- RBI has banned Maharashtra’s Manta Urban Cooperative Bank for six months for payment of money and loan transactions.
- This bank will not be able to make any loan or loan without RBI permission, nor will it be able to renew old loans and make any investment.
- On Tuesday itself, the central government has imposed a series of restrictions on Laxmi Vilas Bank of Tamil Nadu private sector for a month.
The Reserve Bank of India (RBI) has banned the Manta Urban Cooperative Bank in Jalna district of Maharashtra for six months for payment of money and loan transactions. On Tuesday itself, the central government has imposed a series of restrictions on Laxmi Vilas Bank, a private sector in Tamil Nadu for a month.
Regarding the Manta Urban Cooperative Bank, the RBI said in a release on Tuesday that it has given some instructions to the bank, which will be effective for six months from the bank’s closure on 17 November 2020. According to these instructions, this bank will not be able to make any loan or loan without the permission of RBI nor will it be able to renew the old loans and make any investment. Bank has also been banned for accepting new deposits. He will not be able to make any payment nor make any agreement to pay.
Lakshmi Vilas Bank crisis: know everything about Lakshmi Vilas Bank crisis
Restrictions on Laxmi Development Bank
Earlier, the central government has imposed a number of restrictions on Lakshmi Vilas Bank, a private sector in Tamil Nadu for a month. The government has superseded the board of the bank and fixed the Withdrawal Limit. Customers will now be able to withdraw a maximum of 25 thousand rupees from the bank till December 16. The government has taken this step on the advice of the Reserve Bank.
A few months ago, at the Annual General Meeting of shareholders of the bank, 7 directors, including the bank’s MD CEO, were shown the way out. The bank had been struggling with capital crisis for a long time and good investors were being sought for this. As per the data, the bank had total deposits of Rs 21,161 crore in the June quarter.
RBI took charge in its hands
RBI recently took over the responsibility of this bank. RBI constituted a three-member committee to run the bank. Earlier, on the instructions of RBI, a former SBI officer was given the responsibility of operations even after the cash crisis in Yes Bank increased. COD was appointed by RBI on 27 September. It consists of three independent directors Mita Makhan, Shakti Sinha and Satish Kumar Kalra.
One month ban on Laxmi Vilas Bank, customers will not be able to withdraw more than Rs 25,000