RBI has placed Nashik based Padamshree Dr. Vitthalrao Vikhe Patil Co-op Bank under Directions. According to the Directions, depositors will be allowed to withdraw a sum not exceeding ? 1000 (Rupees One Thousand only) of the total balance held in any account.
According to a press release of RBI The Padamshree Dr. Vitthalrao Vikhe Patil Co-operative Bank Ltd., Nashik, without prior approval in writing from the Reserve Bank, will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, etc.
The Directions have been issued from the close of business on May 19, 2018. A copy of the directions is displayed at the bank’s premises for perusal by interested members of public.
The issue of the directions by the Reserve bank should not, per se, be construed as cancellation of banking licence by the Reserve Bank. 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.
