RBI imposed restrictions on 5 co-operative banks

Tags: Economy/Finance National News

The Reserve Bank of India (RBI) on 24 February imposed restrictions on five cooperative banks due to their deteriorating financial condition.

An overview of the news

  • RBI has said in its statement that the restrictions imposed on these co-operative banks will remain in effect for six months.

  • Eligible depositors of all five co-operative banks will receive deposit insurance claim amount of up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation.

  • The move by the RBI is aimed at protecting the interests of depositors and ensuring the stability of the financial system.

Five co-operative banks on which restrictions have been imposed

  • Due to the current liquidity position of the following banks, customers will not be able to withdraw funds from their accounts.

  1. HCBL Co-operative Bank, 

  2. Adarsh Mahila Nagari Sahakari Bank Maryadit, 

  3. Shimsha Sahakara Bank Niyamitha

  • Customers from following banks can withdraw up to ₹5,000.

  1. Uravakonda Co-operative Town Bank 

  2. Shankarrao Mohite Patil Sahakari Bank

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