The RBI on Tuesday imposed several restrictions, including on withdrawals, on The Konark Urban Co-operative Bank, Ulhasnagar (Maharashtra), in the wake of the bank's deteriorating financial situation.
The eligible depositors will be entitled to receive a deposit insurance claim amount of his/her deposits up to Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The restrictions in the form of Directions under Section 35A of the Banking Regulation Act, 1949, on The Konark Urban Co-operative Bank came into effect from the close of business on April 23, 2024 (Tuesday).
With the restrictions imposed, the bank cannot grant or renew any loans and advances, make any investment, incur any liability transfer or otherwise dispose of any of its properties, among others, without permission from the RBI.
"Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor may be allowed to be withdrawn, but are allowed to set off loans," the Reserve Bank said.
The RBI further said restrictions on the lender should not per se be construed as cancellation of banking license.
The bank, it added will continue to undertake banking business with restrictions till its financial position improves.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Featured Video Of The Day
"We Aren't Police...": RBI Chief Day After 4 Firms Banned From Giving Loans RBI Passes Condolence Resolution In Memory Of Ratan Tata RBI Summer Internship 2024: Registration Begins, Stipend Upto Rs 20,000 Hamas Confirms Yahya Sinwar Killed By Israel, Won't Free Hostages Until... Former Delhi Health Minister Satyendar Jain Gets Bail After 2 Years Drone Footage Of Hamas Chief Yahya Sinwar's Last Moments Released By Israel 5-Year-Old's Mother Arrested After His Body Found Floating In Assam River MK Stalin Asks Centre To Recall Tamil Nadu Governor In Row Over Anthem BJP May Have An Opportunity In Jharkhand Track Latest News Live on NDTV.com and get news updates from India and around the world.