Reserve Bank of India (RBI) imposes restrictions on Nagar Sahakari Bank Ltd and penalty on Aurangabad District Central Co-operative Bank Limited

Key facts

• The Reserve Bank of India (RBI) issued directions to the Etawah-based Nagar Sahakari Bank Ltd restricting it from granting or renewing loans, making investments, or accepting fresh deposits without prior written approval.
• Depositors of Nagar Sahakari Bank Ltd are permitted to withdraw a maximum sum of ₹10,000 from savings, current, or other accounts.
• Eligible depositors of Nagar Sahakari Bank Ltd can receive insurance claims up to ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the DICGC Act, 1961.
• The restrictions on Nagar Sahakari Bank Ltd are effective for six months from the close of business on May 18.
• The RBI imposed a monetary penalty of ₹20,000 on the Aurangabad District Central Co-operative Bank Limited, Bihar, for non-compliance with directions on Credit Information Reporting.