RBI News Update: The Reserve Bank of India (RBI) has put restrictions on The National Cooperative Bank in Bengaluru to make payments up to ₹50,000 due to its deteriorating financial condition.
RBI News Update: The Reserve Bank of India (RBI) has imposed limits on one of the oldest institutions in Bengaluru, The National Cooperative Bank due to its deteriorating financial condition. The bank can now pay depositors only up to ₹50,000 in all accounts. In addition, the RBI has barred the bank from renewing loans, making investments, creating liabilities, making payments or accepting new deposits.
In response to its deteriorating financial condition, the Reserve Bank of India (RBI) on Tuesday issued several limits on The National Cooperative Bank, one of the oldest institutions in Bengaluru, allowing it to disburse only up to ₹50,000 to depositors across all types of accounts. been able to do.
According to RBI, the trade limits are effective for six months beginning July 24, 2023 and are subject to review. On 24 July, the Reserve Bank of India (RBI) imposed business limits on the Bengaluru-based The National Co-operative Bank Limited, as well as a deposit withdrawal limit of ₹50,000 per account. It is being told that this action has been taken due to the poor financial condition of the bank.
As a result, according to a statement issued by the RBI, the bank is not permitted to grant fresh loans or accept fresh deposits without prior permission from the central bank. According to RBI, the Deposit Insurance and Credit Guarantee Corporation will pay depositors up to ₹5 lakh in deposit insurance claims.
However, setting business limits does not end the banking license, according to the regulator. As per RBI, the bank will continue banking operations with limits till its financial position improves.
