RBI Imposes Restrictions on Two Cooperative Banks


Last Updated: July 28, 2022, 19:19 IST

Reserve Bank of India.  (Photo: ShutterStock)

Reserve Bank of India. (Photo: ShutterStock)

Lucknow Urban Co-operative Bank and Urban Co-operative Bank Limited can’t grant loans, make any funding and incur any legal responsibility with out permission of the RBI

The Reserve Bank on Thursday mentioned it has imposed a number of restrictions, together with on fund withdrawals, on two Uttar Pradesh-based cooperative banks in view of their deteriorating monetary place. The two lenders are Lucknow Urban Co-operative Bank and Urban Co-operative Bank Limited, Sitapur.

The restrictions beneath the Banking Regulation Act will stay in power for six months. Customers of Lucknow Urban Co-operative Bank won’t in a position to withdraw greater than Rs 30,000, as per an RBI assertion. The withdrawal restrict within the case of Urban Co-operative Bank is Rs 50,000 per buyer, it mentioned in one other assertion.

The two banks, with out permission of the RBI, can’t grant loans, make any funding, incur any legal responsibility — together with borrowal of funds and acceptance of recent deposits, disburse or get rid of properties or property.

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