Reserve Bank of India has taken major action. RBI has imposed restrictions on Mumbai-headquartered Raigad Co-operative Bank. This decision has been taken due to the deteriorating financial condition of this bank.
Informing about the action against Raigad Co-operative Bank, the RBI said that the restrictions on the bank will be applicable for six months. This allows depositors to withdraw less than 15 thousand out of the total amount from savings, current or any other account.
Meanwhile, the RBI also clarified that Raigad Co-operative Bank has only been restricted and its banking license has not been revoked. The bank will continue to operate until the financial condition of the bank improves. Restrictions may change if the bank's position improves. Similar to the sanction imposed on Raigad Co-operative Bank, Shree Chhatrapati Rajarshi Shahu Urban Co-operative Bank Limited in Beed has been fined Rs 6 lakh for violating the rules.