The Reserve Bank of India (RBI) said in a statement that the restrictions under the Banking Regulation Act 1949 will remain in force for six months from the close of business on November 8, 2021 and are subject to review.
According to Central bank, babaji dated Mahila Sahakari Bank, Yavatmal, must not grant or renew, in writing, without the prior approval of the Reserve Bank of India Loan And advance, make any investment, and bear any liability. The liability portion includes borrowing of funds and acceptance of new deposits.
Without the approval of RBI, the co-operative bank may not disburse or agree to any payment, enter into any settlement or arrangement and may not sell, transfer or otherwise dispose of any of its property or assets.
“Keeping in view the current liquidity position of the bank, withdrawal of an amount not exceeding Rs 5,000 from the aggregate balance in all savings bank or current accounts or any other account of the depositor may be permitted but The loan is allowed to be closed subject to the conditions specified in the above RBI instructions,” the statement said.
Also, RBI clarified that issue of instructions should not be treated as cancellation of banking licence.
Babaji Date Mahila Sahakari Bank Limited will continue to do banking business with restrictions till its financial position improves and depending on the circumstances, RBI may consider modification of the existing restrictions.
Separately, RBI has extended the restrictions imposed on Millath Co-operative Bank Ltd., Davangere, Karnataka for another three months till February 7, 2022.
The ban on the Karnataka based co-operative bank was imposed on April 26, 2019, and has been amended from time to time. The last time the restrictions were extended till November 7.