INSUBCONTINENT EXCLUSIVE:
City Co-operative Bank has to take approval from RBI to accept deposits (representational image)
The Reserve
Bank of India has placed curbs on the business activities of Mumbai-based City Co-operative Bank and also said that customers of the
cooperative bank will not be allowed to withdraw more than Rs 1,000 per deposit account
In a statement released on April 18, the RBI said that it has "placed The City Co-operative Bank Ltd, Mumbai under directions
According to the directions, depositors will be allowed to withdraw a sum not exceeding Rs 1,000 of the total balance held in every saving
bank or current account or any other deposit account".(: SBI Says ATM Cash Availability Has Improved In Last 24 Hours)The City Co-operative
Bank will also have to take prior approval from the central bank before it can accept fresh deposits, disburse loans, make any investment,
or borrow funds, the RBI said.The central bank however said that the "issue of the directions by the Reserve Bank should not, per se, be
construed as cancellation of banking licence by the Reserve Bank
The bank will continue to undertake banking business with restrictions till its financial position improves."(: RBI Clarifies There Is No
Cash Shortage, Sufficient Money In Currency Chests)The RBI said it may consider modifications of these directions depending upon
circumstances.According to City Co-operative Bank's website, as on March 2016, its deposit base was Rs 534 crore and it had advances of Rs
Its net non-performing assets stood at 8.84 per cent of advances.
