In view of the deteriorating financial condition of the bank, several restrictions have been imposed by the Reserve Bank of India on Lakshmi Sahakari Bank Ltd., Solapur. In such a situation, some information has been issued for the customers of this bank. One of these is that the withdrawal from their accounts for bank customers has been fixed at only Rs 1,000. In fact, the Reserve Bank said in a statement on Friday that the restrictions imposed under the Banking Regulation Act, 1949 will remain in force for six months after the closure of working hours on November 12, 2021. The restrictions will be reviewed during this time.
Let us tell you that according to the instructions of the Reserve Bank, Lakshmi Sahakari Bank will not be able to give any loan or renew the loan without the permission of the Central Bank. Further, the Bank will neither make any investment nor give any payment or consent to the payment. Notably, withdrawals cannot be allowed in all savings banks or current accounts or any other account of the depositor in aggregate more than Rs 1,000, RBI said.
The Reserve Bank of India further stated that the directions issued by the RBI should not be construed as revocation of the banking licence. The Bank will continue to do banking business with restrictions till its financial position improves. Let us tell you that earlier also RBI had imposed similar restrictions on Babaji Date Mahila Sahakari Bank in Yavatmal, Maharashtra.
RBI said that the installment of the loan deducted from the customer’s account can be allowed to be settled under certain conditions. Along with this, the bank clearly said that these restrictions imposed on the bank should not be seen as cancellation of banking license. The Bank will continue to do banking business with restrictions till its financial position improves.