RBI has put Nashik Zilla Girna Sahakari Bank under Directions through a order dated July 15, 2022. The order says RBI, has issued certain Directions to Nashik Zilla Girna Sahakari Bank Limited, Nashik, whereby, as from the close of business on July 18, 2022, the bank shall not do some business operations.
A copy of detailed directions has been displayed on the bank’s premises for perusal by interested members of the public. Considering the bank’s present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions. However, 99.87 per cent of the depositors are fully covered by the DICGC insurance scheme.
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 till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.