Money & Banking

RBI withdraws directions on Kolikata Mahila Co-op Bank

Our Bureau Mumbai | Updated on April 10, 2021

Under the directions, the bank, without prior approval of RBI, could not grant or renew any loans and advances

The Reserve Bank of India on Saturday withdrew its directions issued to Kolkata-based Kolikata Mahila Co-operative Bank.

The RBI had issued directions to the bank from the close of business on July 9, 2019.

“Reserve Bank, on being satisfied that in the public interest it is necessary to do so, in exercise of the powers vested in it under…the Banking Regulation Act, 1949 (AACS), hereby withdraws with effect from April 10, 2021, the said directions so issued to Kolikata Mahila Co-operative Bank Limited, Kolkata, West Bengal,” the central bank said in a statement.

Under the directions, which were issued in 2019, the bank, without prior approval of RBI, could not grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, among others.

The directions also capped deposit withdrawal at ₹1,000 of the total balance held by depositors in every savings bank or current account or any other deposit account. With the withdrawal of the directions, the cap on deposit withdrawal also goes.

Earlier this week, RBI withdrew the All Inclusive Directions it issued to Kolhapur-based Youth Development Cooperative Bank Ltd.

Published on April 10, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor