RBI has imposed Directions on four urban co-op banks on accounts of various acts of omission and commission on Friday. These UCBs are namely Sangli Sahakari Bank Ltd., Mumbai, Sahebrao Deshmukh Co-operative Bank Ltd., Mumbai, Shri Sharada Mahila Co-operative Bank Limited, Tumkur and Delhi based Ramgarhia Co-operative Bank.
RBI issued certain Directions to Sangli Sahakari Bank Ltd., Mumbai, whereby, as from the close of business on July 08, 2022, the bank will follow its Directions.
Another UCB which has been put under direction is Sahebrao Deshmukh Co-operative Bank Ltd., Mumbai.
The third one is Shri Sharada Mahila Co-operative Bank Limited, Tumkur. RBI says that a sum not exceeding ?7,000/ of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions.
Fourth one is Delhi based Ramgarhia Co-operative Bank. Here a sum not exceeding Rs 50,000/ of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions as stated in the Directions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.
These Directions shall remain in force for a period of six months from the close of business on July 08, 2022 and are subject to review, says RBI.