RBI asks three dist coop banks not to accept fresh deposits

However, renewal of existing deposits would be allowed in the same name and capacity

The Reserve Bank today asked three district central co-operative banks not to accept fresh deposits including in its savings banks account.

The three banks are Osmanabad District Central Co-operative Bank, Jalna District Central Co-operative Bank, and Dhule and Nandurbar District Central Co-operative Bank.

"The directions issued to the above mentioned district central co-operative banks stipulate that they shall not accept fresh deposits including saving bank account, current accounts, fixed deposit accounts, recurring deposit accounts and/or any other deposit by whatever name called," RBI said in a notification.

The central bank said that, however, renewal of existing deposits would be allowed in the same name and same capacity.

RBI further said it may consider modification of the directions depending upon the circumstances and also that the issue of the directions by RBI should not per se be construed as rejection of application of licence of the bank.