“Specifically, withdrawal of an amount not exceeding Rs 15,000 of the total balance in all savings bank or current accounts or any other account of the depositor cannot be permitted,” Reserve Bank said in a statement.
However, the RBI said the ban issued to Raigad Co-operative Bank should not be construed as cancellation of banking licence.
The Bank will continue to do banking business with restrictions till its financial position improves.
The Reserve Bank also said that it may consider amending the directions depending on the circumstances.
In another statement, RBI has also called for imposing a penalty of Rs.6 lakh on Shree Chhatrapati Rajarshi Shahu Urban Co-operative Bank Ltd., Beed for contravention of provisions relating to ‘Fraud-Classification and Reporting’.
(Inputs from PTI)