RBI has imposed Directions on three banks , restricting them from a host of business activities. It has issued certain Directions to Nashik Zilla Girna Sahakari Bank Limited, Nashik, whereby, as from the close of business on July 18, 2022, the bank shall not, without prior approval of RBI conduct certain businesses.
Considering the bank’s present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions. However, 99.87 per cent of the depositors are fully covered by the DICGC insurance scheme.
Another bank which fell under RBI scanner is Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski. The UCB as from the close of business on July 18, 2022, shall not, without prior approval of RBI conduct certain businesses.
The third bank is Raigad Sahakari Bank Limited, Mumbai, which has been imposed with some restrictions in its operation from the close of business on July 18, 2022.
The issue of the above Directions by the RBI on these three banks should not per se be construed as cancellation of banking license by RBI. 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, say RBI releases.
These Directions shall remain in force for a period of six months from the close of business on July 18, 2022 and are subject to review.