RBI Places Restrictions on Sarvodaya Cooperative Bank, Check Out All The Information Here
RBI
The restriction will negatively impact clients whose cash requirements beyond the Rs 15,000 threshold. Additionally, the crisis-hit bank’s lending, investment, and deposit activities were restricted by the RBI.
Given the deteriorating financial situation of the Sarvodaya Co-operative Bank, the Reserve Bank of India (RBI) placed significant limitations on the bank. A withdrawal cap of Rs 15,000 has been imposed on bank clients’ accounts by the banking regulator. The implementation date of these limitations is April 16, 2024.
The restriction will negatively impact clients whose cash requirements beyond the Rs 15,000 threshold. The crisis-hit bank’s lending, investment, and deposit activities were further restricted by the RBI, which released an official statement.
SEVERAL ETHEREUM AND BITCOIN ETFS ARE APPROVED IN HONG KONG. BTC RISES AFTER THE CRASH
“Except as notified in the RBI Direction dated April 15, 2024, a copy of which is displayed on the bank’s website / premises for perusal by interested members of the public,” the release dated April 15, 2024 said, “the bank shall not, without prior approval of RBI 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 of any of its properties or assets.”
Deposit Insurance Relief
Deposit insurance is only available to qualifying depositors up to a maximum of Rs 5 lakh, according to the central bank. In accordance with Section 18A of the DICGC Act (Amendment) 2021, the Deposit Insurance and Credit Guarantee Corporation will pay out the deposit insurance.
The RBI did point out that the limits will be in place until the bank’s financial situation improves and that it is not canceling the lender’s banking license. For the time being, the guidelines will be in force for six months following the date of introduction, after which they will be reviewed in light of the situation.
