RBI thrusts restrictions on 4 co- operative banks

Restrictions have been thrust on 4 co-operative banks namely Saibaba Janata Sahakari Bank, The Suri Friends’ Union Co-operative Bank Ltd, Suri and National Urban Co-operative Bank Ltd, Bahraich, United India Co-operative Bank Limited, Bijnor by The Indian Central Bank due to their worsening financial position.

Depositors of any of these banks are restricted from withdrawing money beyond a certain limit imposed on the said banks.

A person who owns an account in saibaba Janata Sahakari Bank cannot withdraw beyond Rs. 20,000 beyond the bank, an account holder of National Urban Co-operative Bank cannot withdraw more than Rs. 10,000, Similarly restriction imposed on The Suri Friends’ Union bank is Rs. 50,000 per customer. 

Several restrictions have been issued by the Reserve Bank on United India Co-operative Bank Limited, Bijnor which also includes ban of the withdrawal of money by their customers.

Statements related to the restrictions imposed on the co-operative bank were announced separately by the RBI. These restrictions thrust on these co-operative  banks would be applicable for a period of six months.

An additional statement was issued by Reserve Bank a penalty of 57 lakhs has been imposed on Suryoday Small finance bank due to the violation of certain norms which are related to ‘ Frauds classification and reporting by commercial banks and select FIs’