RBI imposes Rs 5,000 withdrawal cap on THIS bank, check details

RBI on Thursday imposed several restrictions on Bengaluru-based Shushruti Souharda Sahakara Bank Niyamita, following a deterioration in the lender's financial position.

The restrictions also include a withdrawal cap of Rs 5,000 per account. The directions shall remain in force for a period of six months from the close of business on April 7, 2022, and are subject to review, the Reserve Bank said in a statement.

The co-operative bank cannot, without prior approval from RBI, grant or renew any loans and advances, make any investment, incur any liability and accept fresh deposits, among other restrictions.

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"In particular, a sum not exceeding Rs 5,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn," the central bank said.

It further said the issue of directions should not per se be construed as a cancellation of the banking license by RBI.

"The bank will continue to undertake banking business with restrictions till its financial position improves," the central bank said.

The Reserve Bank may consider modifications of these directions depending upon circumstances, it added.