The Reserve Bank of India (RBI) has imposed restrictions on a co-operative bank in Maharashtra and also restricted withdrawals from customers. Bank customers will no longer be able to withdraw more than Rs 10,000 from their deposits. According to the RBI, customers of Malkapur Urban Co-operative Bank will now be able to withdraw Rs 10,000 from their accounts.
As the financial condition of Malkapur Urban Co-operative Bank in Maharashtra has deteriorated, other restrictions have been imposed on it besides the withdrawal limit. Now, without the permission of the Reserve Bank, no loan can be given to Malkapur Urban Co-operative Bank and no investment can be made.
The restrictions imposed by the Reserve Bank on the bank will remain in effect for the next six months from Wednesday evening. However, the RBI has said that the imposition of sanctions does not mean that any banking activities will be stopped. According to the RBI, the bank will continue to operate under certain restrictions until its financial position improves.