RBI has imposed restrictions on several restrictions on 3 co-operative banks namely Jaiprakash Narayan Nagari Sahakari Bank ( Basmatnagar), The Karmala Urban Co-operative Bank (Solapur), Durga Co-operative Urban Bank( Vijayawada) because of their deteriorating financial condition. The people having an account on any of the said of the banks have to deal with those restrictions imposed by the central bank.
RBI stated that depositors of Jaiprakash Narayan Nagari Sahakari Bank (Basmatnagar) will not be permitted to withdraw money from their account. Similarly, account holders of The Karmala Urban Co-operative Bank (Solapur) can only withdraw funds up to Rs. 10,000 from each account.
The RBI has also imposed restrictions on Durga Co-operative Urban Bank( Vijayawada) the customers cannot withdraw above Rs. 1.5 lakhs from the said bank. The restrictions are imposed under Banking Regulation Act on the three banks and will remain in force only for 6 months. These restrictions can further be reviewed.
The said bank are further restricted from granting loans, making investments, incurring any liability such as borrow funds and acceptance of fresh deposits or deposition of fresh properties or assets. The restrictions imposed by RBI will not cancel the banking license of the three lenders. They will proceed with undertaking their business but with restrictions limited on them.