The Reserve Bank of India on Tuesday placed Surat Nagrik Sahakari Bank ‘under directions’, restricting its banking business till its financial position improves.
According to the directions, depositors will not be allowed to withdraw any amount above Rs 1000 of the total balance held in every savings bank or current account or any other deposit, subject to conditions stipulated in the RBI Directions, the RBI said.
The Surat-based bank will not be able to grant or renew any loans and advances, make any investment, incur any liability, including borrowing funds and acceptance of fresh deposits, among others, without prior approval of the RBI. The Directions have been issued from the close of business on March 1, 2013.