If you also have an account in this bank, then definitely read this news! RBI imposed 6 month ban

RBI bank restrictions: Due to non-compliance of banking rules and continuously deteriorating economic situation, the Reserve Bank of India (RBI) has taken strict action against another co-operative bank. The central bank has imposed several stringent restrictions on Mumbai-based ‘Mogaveera Co-operative Bank’ for six months. These instructions of RBI came into effect after the end of working hours on Friday. After this action, a special limit has been set on how much amount the account holder can withdraw.

This step will have a direct impact on bank account holders.

This step of the Reserve Bank will have a direct impact on those who have deposited money in banks. According to the new instructions of RBI, account holders can now withdraw a maximum of ₹ 1 lakh from their savings, current or any other account. There has been a complete ban on withdrawal of more than ₹1 lakh. However, there is some relief also. Customers who have taken loan from the bank can still pay their EMI.

Complete ban on new loans and investments

RBI has made it clear that during this six-month moratorium period, many restrictions will be applicable on the functioning of Mogaveera Cooperative Bank. The management of the bank will neither be able to give loans or advances to new customers nor will it be able to renew the existing loans. Apart from this, the bank will not be able to make new investments, take new liabilities or borrow funds from the market. During this period, the bank will not be able to accept new fixed deposits (FD) or any other type of deposits.

License intact, situation under monitoring

In its official statement, the central bank has made it clear that these restrictions should not be seen as a step to cancel the banking license. RBI has said that it is in constant touch with the board and senior management of the bank to improve the financial and liquidity position of the bank. These instructions have been issued to protect the interests of the depositors and address the financial concerns of the bank. Until the financial condition of the bank improves, it will continue its banking operations within the ambit of these restrictions.

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