Pursuant to the authority vested in it by the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) has issued directives to Sarvodaya Co-operative Bank Ltd., Mumbai, effective April 15, 2024.
These directives prohibit the bank from granting or renewing loans, making investments, incurring liabilities, or accepting deposits without RBI approval.
Limited withdrawals up to Rs 15,000 are permitted, subject to conditions. Depositors are eligible for insurance claims up to ?5,00,000 from DICGC.
The issuance of these directives does not imply the cancellation of the bank’s license; it will continue operations with restrictions until financial recovery. The directives are effective for six months and may be subject to review. Further details available on the bank’s and DICGC’s websites.