RBI imposes ban on withdrawal of over Rs 10,000 from this bank

The Reserve Bank of India has tightened the reins on another bank after the bad financial condition. The central bank has imposed many restrictions on Nagar Urban Co-Operative Bank Limited, Ahmednagar, Maharashtra. Under these, the withdrawal limit for the customers of the bank from their accounts has been capped at Rs 10,000.

The central bank has taken this step in view of the deteriorating financial condition of the lender. These restrictions under the Banking Regulation Act (Applicable to Co-operative Societies), 1949 will be in force for a period of six months from the close of business hours on December 6, 2021, and will be reviewed.

RBI has said that the bank will neither give any loan or advance nor renew any loan without its permission. Along with this, any kind of investment by the bank, taking any kind of liability, payment and transfer or sale of properties will also be prohibited.

The Reserve Bank said that the customers of the bank will not be able to withdraw more than Rs 10,000 from their savings bank or current accounts. A copy of the Reserve Bank's order has been placed in the bank premises so that customers can get information about it.

However, the central bank has made it clear that these restrictions should not be taken to mean the cancellation of banking licenses.