Given the poor financial situation, the Reserve Bank of India tightened the screws on another bank. The Nagar Urban Co-Operative Bank Limited, located in Ahmednagar, Maharashtra, is subject to a number of limitations from the central bank. The bank’s customers’ maximum withdrawal from their accounts has been set at Rs 10,000 as an outcome of these.
Due to the lender’s declining financial situation, the central bank has taken this action. Following the close of business on December 6, 2021, certain limitations under the Banking Regulation Act (Applicable to Co-operative Societies), 1949 will be in effect for a period of six months before being reviewed.
According to the RBI, the bank will not grant any loans, advances, or renewals of loans without its approval. Along with this, the bank will be forbidden from making any form of investment, accepting any kind of liability, making payments, and transferring or selling real estate.
Customers of the bank would not be permitted to withdraw more than Rs 10,000 from their savings bank or current accounts, according to the Reserve Bank. Customers can learn more about the Reserve Bank’s order by reading the copy that has been posted on the bank’s website.
The central bank has emphasised that these limitations should not be interpreted as the cancellation of banking licences.