RBI bars People’s Co-operative Bank from granting Fresh loans, accepting deposits for 6 months
- The Reserve Bank of India (RBI) on Thursday barred Kanpur-based People’s Co-operative Bank from granting fresh loans and accepting deposits for six months, due to its weak financial position.
- The RBI also said no withdrawal of amount of a depositor will be allowed from the co-operative bank.
- “As from the close of business on June 10, 2020, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise,” the RBI said in a release.
- The central bank has barred the co-operative bank from selling, transferring or disposing any of its properties or assets.
- “In particular, no amount of the total balance across all savings bank or current accounts or any other account of a depositor may be allowed to be withdrawn,” the central bank said.
- These directions will remain in force for six months from the close of business on June 10 and are subject to review, it said.
- The central bank, however, clarified that the directions should not be construed as cancellation of banking licence of the co-operative bank.
About RBI-
The Reserve Bank of India (RBI) is India’s central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of the entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India.RBI regulates commercial banks and non-banking finance companies working in India. It serves as the leader of the banking system and the money market. It regulates money supply and credit in the country.
- Headquarters– Mumbai, Maharashtra
- Formation– 1 April 1935
- Deputy Governors– 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, one is yet to be appointed)
जीके और दैनिक करेंट अफेयर्स अपडेट हिंदी में प्राप्त करें – क्लिक करें
