The Reserve Bank of India (RBI) has taken action against Colour Merchants Cooperative Bank in addition to fining SBI, Indian Bank, and Punjab and Sindh Bank. In light of the Colour Merchants Co-operative Bank’s poor financial situation, the RBI has placed a number of limitations. A customer of the bank will only be permitted to withdraw up to Rs 50,000 under the first restriction.
Beginning on September 26, restrictions are in force.
The RBI stated that the limits it had put in place started to take effect on September 26 in its statement. The following six months will see these limitations in effect. According to RBI, Colour Merchants Cooperative Bank is not permitted to provide new loans or extend existing ones without first receiving approval. In addition, he is no longer permitted to accept new deposits or make any investments. A depositor will not be permitted to withdraw more than Rs 50,000 from his overall deposits with the bank, according to the RBI.
The action shouldn’t be interpreted as a license cancellation.
The Deposit Insurance and Credit Guarantee Corporation would provide deposit insurance benefits to bank account holders for deposits up to Rs 5 lakh, according to the central bank. Customers can speak with bank representatives to learn more about this. The central bank added that the actions it took to punish colored merchants shouldn’t be seen as the revocation of banking licenses. He stated that until the bank’s financial situation improves, it will continue to function under these limitations.
On the other hand,
the government prolonged M Rajeshwar Rao’s tenure as the deputy governor of the Reserve Bank of India by one year. Sources claim that the request to reappoint Rao to his position as the Deputy Governor of the RBI for another year received approval from the Cabinet’s Appointments Committee. He will begin serving again on October 9, 2023. In October 2020, Rao was initially appointed as the RBI’s Deputy Governor for a period of three years. He was RBI’s Executive Director before this.
Read More: Price of the Samsung Galaxy S23 FE leaked! these are the features
|
|
  YouTube |
         Click Here |
| Â Facebook Page |
         Click Here |
| Â Instagram |
         Click Here |
| Â Telegram Channel |
         Click Here |
