NS reserve Bank of India imposed many restrictions on Monday Nagar Urban Co-Operative Bank Ltd., Ahmednagar, Maharashtra, including a limit of Rs 10,000 on withdrawals for customers in view of deterioration in its financial position. Restrictions imposed through instructions under banking regulation act (as applicable to co-operative societies), 1949 will remain in force for a period of six months from the close of business on December 6, 2021 and is subject to review, the Reserve Bank said in a statement.

RBI stated that the Bank shall not grant or renew any loans and advances, make any investments, incur any liabilities, disburse, transfer or otherwise dispose of any property or assets without the prior approval of the RBI. Will do, RBI said.

“Specifically, an amount exceeding Rs 10,000 of the aggregate balance in all savings bank or current accounts or any other account of the depositor may be permitted to be withdrawn subject to the conditions specified in the above. RBI instructions,” it added.

A copy of the instructions is displayed at the bank’s premises for perusal by members of the public.

It further said that the issue of instructions should not be treated as cancellation of banking license by RBI.

“The bank will continue to carry on banking business with restrictions until its financial position improves,” the central bank said, adding that it may consider amendments to these directions depending on the circumstances.

Meanwhile, RBI has imposed a penalty of Rs 2 lakh on Pune People’s Co-operative Bank Ltd., Pune for non-compliance of ‘Know Your Customer’ norms.

However, RBI said the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the Pune People’s Co-operative Bank with its customers.