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RBI Imposes Restrictions on Two Cooperative Banks

Last Updated: July 28, 2022, 19:19 IST

Reserve Bank of India. (Photo: ShutterStock)

Reserve Bank of India. (Photo: ShutterStock)

Lucknow Urban Co-operative Bank and Urban Co-operative Bank Limited cannot grant loans, make any investment and incur any liability without permission of the RBI

The Reserve Bank on Thursday said it has imposed several restrictions, including on fund withdrawals, on two Uttar Pradesh-based cooperative banks in view of their deteriorating financial position. The two lenders are Lucknow Urban Co-operative Bank and Urban Co-operative Bank Limited, Sitapur.

The restrictions under the Banking Regulation Act will remain in force for six months. Customers of Lucknow Urban Co-operative Bank will not able to withdraw more than Rs 30,000, as per an RBI statement. The withdrawal limit in the case of Urban Co-operative Bank is Rs 50,000 per customer, it said in another statement.

The two banks, without permission of the RBI, cannot grant loans, make any investment, incur any liability — including borrowal of funds and acceptance of fresh deposits, disburse or dispose of properties or assets.

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