Mumbai: The Reserve Bank of India has imposed additional restrictions on 4 co-operative banks which are facing the worst financial crisis. The customers of this bank are also restricted from withdrawing money from the bank.
Rural farmers, small and micro traders save their money in cooperative banks as they get high interest on deposits in cooperative banks. But due to the frequent frauds there, the trust in cooperative banks is becoming questionable. In the last 5 financial years alone, there has been an embezzlement of Rs.220 crore in urban cooperative banks. In this regard, 1,000 cases have been reported.
BMC is headquartered in Mumbai. A few years ago, the Punjab and Maharashtra Co-operative Bank extended a loan of up to Rs 6,500 crore to a real estate company called Housing Development and Infrastructure Ltd. This is four times higher than RBI’s regulatory limit. BMC to reveal this scandal. The RBI imposed a ban on the bank’s operations for 6 months and brought it under its control.
Some of its customers committed suicide in the shock of being cheated of their money. After this, cooperative banks were brought under the control of the Reserve Bank in order to prevent the administrative malpractices of the cooperative banks.
In this situation, the Reserve Bank of India has imposed some restrictions on the four cooperative banks.
The Reserve Bank of India has imposed stringent restrictions on four co-operative banks namely Saibaba Janata Sahakari Bank, The Suri Friends Union Co-operative Bank Ltd, Suri and National Urban Co-operative Bank Ltd, Bahraich.
Considering the poor financial condition of these four banks, customers from Saibaba Janata Sahakari Bank have to withdraw Rs. RBI has allowed withdrawals of only 20,000. Similarly from The Suri Friends Union Co-operative Bank Rs. It has also announced that customers can withdraw 50,000. In National Urban Cooperative Bank, the withdrawal limit per customer is fixed at Rs.10,000.
The Reserve Bank of India has announced that these restrictions will continue for six months. It seems that after six months the restrictions may be eased according to the process of these banks.
Apart from this, Reserve Bank has issued an order imposing a penalty of Rs 57.75 lakh on Suryodai Small Finance Bank.