Bank withdrawal limit: Customers of Shankarrao Mohite Patil Sahakari Bank, Akluj in Maharashtra cannot withdraw more than Rs 5,000 from their accounts as the Reserve Bank of India (RBI) has imposed several restrictions on the bank. The decision has come in view of the deteriorating financial condition of the bank.
The restrictions will remain in force for six months from the close of business on February 24, 2023, and are subject to review. The bank can no longer lend, make any investment, incur any liability and transfer or otherwise dispose of any of its assets without the prior permission of the RBI.
The restrictions or directions under Section 35A of the Banking Regulation Act, 1949 shall come into force after the close of banking business hours on Friday. In a statement, the Reserve Bank of India (RBI) said, ‘In particular, the total balance in all the savings bank or current accounts or any other account of the depositor may be permitted not to exceed Rs 5,000….’
license not revoked
It added that the issuance of the directions should not be taken as cancellation of the banking license by the RBI. RBI said, ‘The bank will continue to do banking business with restrictions till its financial position improves.’ Explain that eligible depositors will be entitled to receive deposit insurance claim amount of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation.
