Reserve Bank of India (RBI) has taken strict action against two banks. The ban has been imposed on The UP Civil Secretariat Primary Co-operative Bank Limited, based in Lucknow, and The State Employees Co-operative Bank Limited, Ahmedabad, based in Gujarat. During this period, customers will not be allowed to withdraw money from savings account/current account or any other account.
RBI has directed both the banks to close business from March 11. They have been barred from loans, advances, any kind of investment, fresh deposits etc. Not only this, banks will not be allowed to borrow, enter into any kind of agreement or arrangement, sell, transfer or dispose of property or assets in any way.
These actions will be allowed
Both the banks have been allowed to spend on essential things like employee salaries, rent, electricity bills etc. Loan setoff against deposits will also be allowed subject to conditions as per RBI. The Central Bank has also directed both the banks to display the order copy on their website. So that customers and stakeholders can know about it.
Why was this step taken?
RBI has raised this in view of the liquidity position of banks. Recently, discussions were held with the board and senior management to improve the functioning of banks. It was necessary to issue this instruction to address supervisory concerns and to protect the interests of the bank’s account holders. The order will remain in effect from March 11 for 6 months. However, RBI will continue to review banks from time to time. Keeping in view the situation, changes will also be made in the instructions.
What will happen to the account holders’ money?
During the ban, customers will not be able to withdraw money from the account. But security will be provided on their deposits. Account holders, after their willingness and verification, can claim deposit insurance on their deposits from the Deposit Insurance and Credit Guarantee Corporation under the rules of the DICGC Act 1961, the limit of which is Rs 5 lakh. Official website for information to this Visiting is recommended.
PR225377486CF009794C40AB4E89C1ACF9AFE2 PR2252A870C1B251CF4C20845DBF1B0AD2F2AF
-
UK government releases Mandelson US appointment files
-
The ridiculous Igor Tudor problem Tottenham face and the strange Cristian Romero moment
-
Carole Middleton borrows Princess Kate's hat for Cheltenham outing
-
Time for Indian sport fans to raise a toast to Lakshya Sen as well
-
Igor Tudor set to avoid Tottenham sack before Liverpool clash as decision made
