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RBI Action, Know What is The Reason

RBI action RBI imposed strict restrictions on five banks know what is the reason. RBI Bank Reserve Bank of India today in view of the deteriorating financial condition of five public sector banks. They have been banned in some way, don’t know what is the reason.

Reserve Bank of India has banned these five cooperative banks of the country for violating many other rules including giving loans to RBI Restricted Bank List customers.

RBI Action

The Reserve Bank of India has banned some five cooperative banks in the country from working contrary to RBI rules and violating other rules including giving loans to customers. These banks have been banned from giving loans, investing, and getting liquidity funds. At the same time, RBI has also issued guidelines related to the withdrawal of money for the customers of these banks.

The Reserve Bank says that this curb is in view of the deteriorating financial condition of these banks. What else has RBI said about this, the restrictions on these banks will continue for six months.

Bank customers where will not be able to withdraw their deposited money from the bank. At the same time, these banks will not be able to give new loans to anyone without the prior permission of RBI, apart from this, they will not be able to transfer or dispose of any of their property.

The Reserve Bank of India said that this ban is under review, which means that the central bank will decide to remove the ban only after reviewing the functioning of the banks, if there is an improvement in the condition of the banks, then it can be removed. It is clarified that the license of the bank has not been banned.

Restrictions imposed On These Banks

RBI imposed restrictions on these five banks. They include HCBL Sahakari Bank (Lucknow UP), Adarsh Mahila Nagari Sahakari Bank Maryadit (Aurangabad Maharashtra), Shimsha Sahakari Bank (Niymitha Mudder Karnataka), Uravakonda Co-operative Town Bank (Uravakonda Andhra Pradesh), and Shankar Rao The Mohite Patil Cooperative Bank (Maharashtra) is incorporated.

Current customers of HCBL Sahakari Bank (Lucknow UP), Adarsh Mahila Nagari Sahakari Bank (Aurangabad Maharashtra), and Shimsha Sahakari Bank (Niymitha Mudder Karnataka) will not be able to withdraw money Due to lack of liquidity, their accounts will also be closed.

Uravakonda Co-operative Town Bank (Uravakonda Andhra Pradesh), and Shankar Rao Mohite Patil Sahakari Bank (Akluj Maharashtra) customers can now withdraw only up to ₹5000 from their bank deposits. This means that no matter how much amount is deposited in the customer’s account, he can only withdraw ₹ 5000 from his account. At the same time, the Reserve Bank of India said that eligible deposits of all five cooperative banks will be able to get the amount of deposit insurance claim up to ₹ 5 lacks from, Credit Guarantee and Deposit Insurance Corporation.

Read More:- Rajasthan Budget 2023

Money Will Not Be Able To Transfer for The Next Six Months

Many Restrictions Have Been Imposed

According to the statement issued by the RBI, this ban on these banks will remain for the next six months, which means that the customers of the bank will not be able to withdraw money for the next six months. Can’t approve any loan without informing RBI and can make any kind of investment, as well as they don’t have the right to give any kind of loan, apart from this they can’t raise any. Also, cannot transact or use the property for any other purpose.

What is The Reason Behind Banning Banks?

Disciplinary action is taken on banks from time to time towards RBI, action is taken on banks for violating rules and for other reasons. Recently some nationalized banks have also been fined. That’s why the Center has also imposed a heavy fine on them.

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