Page 19 - Banking Finance December 2021

CO-OPERATIVE BANK NEWS

Co-Operative Bank

News

RBI imposes restrictions The newly announced restrictions will be allowed to be withdrawn," the RBI
remain in force for six months from the said.
on Malkapur Urban Co-op close of business on Wednesday (No-
Bank vember 24). Coop banks in Maha 'still

The Reserve Bank of India (RBI), im- preserving' Rs. 112 crore in
Restrictions put on Laxmi
posed several restrictions on custom-
ers of Malkapur Urban Co-operative Cooperative Bank, Solapur old currency notes
Bank in Maharashtra. The steps were Five years after demonetisation, eight
The Reserve Bank of India (RBI) im-
taken after considering the deteriora- posed several restrictions on Laxmi district cooperative banks in
tion in the lender's financial position. Cooperative Bank Ltd, Solapur, includ- Maharashtra continue to face the chal-
lenge of preserving Rs. 112 crore in old
Malkapur Urban Co-operative Bank ing Rs 1,000 cap on withdrawals for currency notes amid the Reserve Bank
shall not without prior approval of the customers, due to deterioration in its
of India's (RBI's) refusal to accept
RBI renew any loans, make any invest- financial position. them. The banks are awaiting the or-
ment, incur any liability, and disburse The restrictions imposed under the der of the Supreme Court even as it has
any payment, the Reserve Bank said in Banking Regulation Act, 1949, shall become a headache for them to pre-
a statement. remain in force for six months from the serve this amount for the last five
One of the major decisions taken by close of business on November 12, years.
2021, and are subject to review, the
the RBI on Malkapur Urban Co-op Pune District Cooperative Banks' chief
RBI said in a statement.
Bank customers is that they won't be executive officer Pratapsinh Chavan
able to withdraw more than Rs As per the directions, the bank shall said, "We have Rs. 22.55 crore in old
10,000. The decision is imposed on not, without the prior approval of the currency. We challenged the RBI deci-
both savings and current account cus- RBI, grant or renew any loans and sion and the case is in the Supreme
tomers. advances, make any investment, incur Court now. There is no option but to
any liability, and disburse or agree to keep these old currency notes till the
"In particular, a sum not exceeding Rs
disburse any payment. court gives its verdict. It is a tough job
10,000 of the total balance across all
"In particular, a sum not exceeding Rs to preserve such a huge amount of
savings bank or current accounts or
1,000 of the total balance across all cash for the past five years."
any other account of a depositor, may
savings bank or current accounts or Appearing for Pune District Central
be allowed to be withdrawn...," it
any other account of a depositor, may Cooperative Bank Ltd. (PDCC) during
added.

BANKING FINANCE | DECEMBER | 2021 | 19