RBI's restrictions on Pune-based Anand Co-operative Bank Limited has been extended by six months till March 24, 2021, subject to review. The direction is likely to add woes to customers as they will not be allowed to withdraw amount above Rs 1,000 of the total balance in every saving account or any other deposit account. Besides, the ban on granting loans, making investments, borrowing funds and accepting deposits will remain imposed on the co-operative bank.
The Reserve Bank of India (RBI) had placed the Shri Anand Co-operative Bank Limited, Chinchwad, Pune, Maharashtra under restrictions from the close of business on June 25, 2019 for a period of six months. The validity of the restrictions was later extended up to December 24, 2020.
"It is hereby notified for the information of the public that, the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank till March 24, 2021 as per the directive dated December 23, 2020, subject to review," the central bank notified on Thursday.
The apex bank said that all other terms and conditions of the directives will remain unchanged. "The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank," it said.
The bank will continue to undertake banking business with restrictions till its financial position improves.
Shri Anand Co-operative Bank, without prior approval in writing from the RBI, cannot 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, enter into any compromise or arrangement and sell, transfer any of its properties or assets.
By Chitranjan Kumar