Taking action, the Reserve Bank of India has declared a ban on a total of 5 banks, along with which withdrawal of money from these banks has also been banned. In order to keep the money again to the common people, a big blow has been received from the banks. While taking this action, RBI has termed it as Directions under Section 35A read with section 56 of the Banking Regulation Act, 1949.
Five co-operative banks banned
In view of the poor financial condition, the Reserve Bank of India on Friday imposed several restrictions, including withdrawal, on five cooperative banks.
- HCBL Cooperative Bank, (Uttar Pradesh),
- Adarsh Mahila Nagari Cooperative Bank Limited,
- (Maharashtra) Cooperative Bank
- Shimsha Cooperative Bank
- Karnataka Cooperative Bank
Customers of these banks cannot withdraw funds from their accounts.
What is the situation for common people.
Along with the restrictions imposed by RBI, it has been informed in the press release that the money of common citizens will be provided maximum up to Rs 5 lakh under deposit insurance claim.
What will happen to these banks next?
Giving information in its press release, the Reserve Bank of India has said that the banking license of these banks is not being cancelled, but a temporary ban has been imposed and these restrictions will not be removed from the banking business to improve the condition of the banks.
This new restriction has been implemented from February 24 itself and it will continue for the next 6 months, after which the RBI will review it again and then consider it.
