The Reserve Bank of India (RBI) has cancelled license of Davangere-Karnataka-based Millath Co-operative Bank Ltd due to inadequate capital and lack of earning prospects.
The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months till November 7.This extension is subject to review, said an RBI statement. The restrictions were last extended till .
RBI extends restrictions on Millath Co-op Bank by 3 months
By IANS |
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Reserve Bank of India (RBI). (File Photo: IANS). Image Source: IANS News
Mumbai, May 8 : The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021.
As per RBI s directions, the co-operative bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise.
Highlights
The RBI has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021.
The bank would also not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.
Further, the centre also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account.
India’s apex bank Reserve Bank of India (RBI) has given an extension to the restrictions on a bank by three months and has further directed it not to write or renew any loans without its approval. This is going to affect the customers of this bank as there is a cap on the withdrawal limit too. This bank will also not be able to further make any kind of investment.