The Reserve Bank of India has issued Directions to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra for a period of six months with effect from close of business as on January 29, 2015.
According to the Directions, Kisan Nagari Sahakari Bank Maryadit, Parbhani cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose any of its properties or assets except as notified in the Reserve Bank’s Directions.
Further, the bank can allow its depositors to withdraw a sum not exceeding Rupees one thousand only of the total balance in every savings bank or current account or any other deposit account on one occasion during the period of Directions.
A copy of the Directions is displayed on the bank’s premises for perusal by interested members of public.
The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.
One more cooperative bank in trouble. This is surprising that bank after bank are under restrictions from RBI. Will the concerned officials will take some preventive actions to save cooperative banks in this country? looking to the situation my sincere advise to all Indians that close your accounts in cooperative banks and choose some strong bank
( At least nationalised) to deposite your hard lifetime earnings so in the verge of retirement you can live peacefully to some extent at least.
RBI should have full responsibility and control on cooperative banks. Only putting restrictions will not solve anything.
This type of restrictions by RBI has became a normal and routine procedure which should be an exception. Hence sincere advise that close the accounts in cooperative banks to save you from future worries.
VIJAY has given manifold advices;
RBI should take full responsibility of CO OP BANKS (I.E. OF MEN WITH NO SCRUPLES’)
DEPOSITORS should take back their hard earned money from Coop banks so that RBI closes them
Dishonest coop Bank directors will then ransack other cooperatives….Are we loosing faith from co-ops?
Mr Naik,
Not loosing faith but already lost!If you see every fortnight there is one cooperative bank which is put under restrictions due to mismanagement by nexus of bank officials and so called associated politicians.Now either RBI should have full control without political interfearance or then, no alternative to withdraw all hard earned money from cooperative banks.
Now even sahakar minister kept hold on the enquiries against the cooperative culprits.In the situation if you have some other advise please!