Indian The Reserve Bank (RBI) on Tuesday imposed several restrictions on the Konark Urban Co-operative Bank based in Ulhasnagar, Maharashtra, including withdrawal of funds. These restrictions have been imposed on the bank in view of its poor financial condition. Eligible depositors will be entitled to receive deposit insurance claim amount up to Rs five lakh from their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The restrictions on Konark Urban Co-operative Bank under Section 35A of the Banking Regulation Act, 1949 came into effect from the close of business on April 23, 2024 (Tuesday).
Loan will not be approved
With the restrictions imposed the bank cannot sanction or renew any loans and advances, make any investments, transfer any liabilities or dispose of any of its assets without the permission of the RBI. .
Money will not be able to be withdrawn from the account
The central bank said, “Keeping in view the current cash position of the bank, no amount may be permitted to be withdrawn from the total balance in all the savings accounts or current accounts or any other account of the depositor but to adjust the loans. is allowed.” The RBI said the ban on the lender should not be construed as cancellation of the banking license. It said the bank will continue to conduct banking operations with restrictions until its financial position improves.
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