RBI imposes restrictions on four co-op banks, caps withdrawals

Four co-operative banks – Saibaba Janata Sahakari Bank, The Suri Friends’ Union Co-operative Bank Ltd, Suri (West Bengal) and National Urban Co-operative Bank Ltd, Bahraich – have had restrictions imposed on them by the Reserve .

In view of their deteriorating financial positions, the RBI has imposed withdrawal restrictions, capping Saibaba Janata Sahakari Bank’s withdrawals at Rs 20,000 and The Suri Friends’ Union Co-operative Bank’s at Rs 50,000.

For the National Urban Co-operative Bank, the withdrawal limit has been set at Rs 10,000 per customer.

These restrictions are set to remain in place for six months. Additionally, the RBI has also imposed a penalty on for violations regarding ‘frauds classification and reporting by commercial banks and select FIs’.