Restrictions on Malkapur Urban Co-operative bank lands thousands of account holders in trouble

Restrictions announced by the RBI,15,000 account holders, deposits worth Rs 40 crore.

Aurangabad, Nov 25:

The Reserve Bank of India (RBI) has imposed financial sanctions on Malkapur Urban Co-operative Bank, due to its deteriorating financial condition. The account holders will be able to withdraw only Rs 10,000 once in six months until the financial condition of the bank improves. As many as 15,000 customers of the branch have landed in trouble due to the restrictions.

The RBI imposed financial sanctions on the bank from Wednesday. The bank will not be allowed to accept new deposits, disburse and renew loans and advances and make investments without the written permission of RBI. Apart from this, Rs 10,000 can be withdrawn once in 6 months from all the savings, current and other accounts by the depositors. Due to the restrictions, the depositors were in panic. As a result, thousands of account holders had rushed to the bank on Thursday morning to withdraw money. Girish Bang, manager, Malkapur Waluj branch, said, "The RBI has imposed restrictions on financial transactions, but our banking license has not been revoked. The bank is following RBI rules”.

Deposits worth Rs 40 crore

The bank has 15,000 account holders and deposits of around Rs 40 crore. Many of the account holders have saved money for marriage of their children, building houses and purchasing plots. Some customers are repaying the installments for home and vehicle loans from the interest received from the fixed deposit.

However, there are restrictions on withdrawal of money, some account holders including Sheetal Madane, Yusuf Sheikh, Mahavir Dhumale and others raised the question of how to repay the loan installments and make financial transactions. Some account holders have also expressed fears that the marriages may be delayed due to the restrictions.