The Reserve Bank today imposed severe restrictions on the operations of Kapol Co-Operative Bank, including a cap of Rs 3,000 on deposit withdrawals.
The apex bank issued certain directions to the city-based cooperative bank which included allowing depositors to withdraw only up to Rs 3,000 from their savings or current accounts, an RBI statement said.
The troubled bank will also not be able to renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, the RBI said.
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It has also been prohibited from disbursing any payments and sell any of its assets.
The RBI however clarified that these restrictions should not be construed as a cancellation of the bank's license.
"The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these directions depending upon circumstances," it said.
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