Another co-operative bank in the state has found a crisis. The Reserve Bank of India (RBI) has banned withdrawals from Independence Co-operative Bank in Nashik, Maharashtra. The Reserve Bank of India (RBI) on Wednesday said that 99.88 per cent of its depositors are fully covered by the Deposit Insurance and Credit Guarantee Corporation Insurance Scheme.
The ban on withdrawals from Dependency Co-operative Banks will be for six months. The RBI said that given the current financial condition of the bank, depositors would not be allowed to withdraw any amount from their savings or current account as well as any other account. Bank depositors can repay the loan in exchange for these deposits. There are some conditions for that too. The RBI imposed some more restrictions on the bank after office hours ended on Wednesday. Under this, the bank's chief executive officer will not be able to give any loan without the approval of the RBI. Also will not be able to renew any loan. Apart from this they will not repay any investment or any amount. According to the RBI, the bank will be able to continue its banking operations even after the restrictions. These restrictions will continue until the economic situation improves. The central bank also said that the Reserve Bank could amend the restrictions as per the circumstances.