RBI said in a statement that the restrictions imposed under the Banking Regulation Act, 1949 will remain in force for six months from the close of business on November 12, 2021 and are subject to review.
In accordance with the instructions, the Bank shall not, without the prior approval of the Reserve Bank of India, grant or renew any loans and advances, make any investments, undertake any obligation, and shall not disburse or agree to make any payments.
“In particular, withdrawal of an amount not exceeding Rs 1,000 of the aggregate balance in all savings bank or current accounts or any other account of the depositor cannot be permitted,” RBI said.
It further said that issue of directions by RBI should not be treated as cancellation of banking licence.
“The bank will continue to do banking business with restrictions till its financial position improves,” the Reserve Bank of India said.
RBI had imposed similar restrictions on Monday as well. Babaji Date Mahila Sahakari Bank, Yavatmal, Maharashtra.