RBI cracks whip on Adarsh Mahila Nagari Sahakari Bank

-Panic among account holders: Restrictions will remain in place for six months

Chhatrapati Sambhajinagar: The Reserve Bank of India (RBI) on Friday imposed several restrictions on five cooperative banks, including the Adarsh Mahila Nagari Sahakari Bank Ltd in the city on withdrawals, in the wake of the deteriorating financial condition of the lenders. The restrictions will remain in place for six months, the RBI said in statements.

With restrictions in place, the bank, without prior approval of RBI, cannot grant loans, make any investment, incur any liability and transfer or otherwise dispose of any of its properties. No transaction or any other use of wealth can be done till the restrictions are in place. Eligible depositors of the bank will be eligible for deposit insurance claim amount up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation.

Customers in panic

Information about this notice spread like wildfire in the city on Saturday. Many account holders reached the bank after getting the information. The bank officials were seen consulting the customers.

Action six months ago

The RBI had imposed a monetary penalty of Rs 25 lakh on the Adarsh Mahila Nagari Sahakari Bank Ltd six months ago. The bank was found guilty of non-compliance with the directions issued by the RBI. This action was based on deficiencies in regulatory compliance.