RBI imposes restrictions on Ajantha Urban Co-op bank

Chhatrapati Sambhajinagar: The Reserve Bank of India (RBI) has announced restrictions on Ajantha Urban Co-operative Bank starting from August 29. These restrictions will be enforced for a duration of six months.

As per the RBI's directive, the affected banks are prohibited from granting or renewing loans and advances, making investments, incurring any liabilities or borrowing funds, accepting fresh deposits, and disbursing payments. Additionally, they are not allowed to enter into any compromise or arrangement or dispose of any properties or assets without prior approval from the RBI. The imposed limitations aim to address the banks' financial challenges. It is important to note that despite the restrictions, the affected banks will continue to operate and undertake banking business, albeit with certain limitations, until their financial position improves. Meanwhile, the bank has two branches in the city with depositors thronging the bank to withdraw the money after the restrictions were imposed. The commotion of depositors continued throughout the day, as bank officials were trying to ease off the situation.