Raigad Sahakari Bank of Mumbai subject to limitations from RBI

Due to the lender’s worsening financial situation, the RBI imposed a number of limitations on Mumbai-based Raigad Sahakari Bank, including a withdrawal cap of Rs 15,000 per customer. The cooperative bank is subject to a number of restrictions, including the inability to issue loans, make any investments, or take new deposits without RBI‘s prior approval.

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KEY POINTS:

• The Reserve Bank stated that a depositor may be permitted to withdraw up to Rs 15,000 of their entire balance across all savings bank, current, or other accounts.
• The limitations will be in effect for a full six months.
• The RBI added that it would be incorrect to interpret the directives given to Raigad Sahakari Bank as the revocation of its banking licence.
• Until its financial situation becomes better, the bank will continue to conduct banking business with limits.
• In addition, the Reserve Bank stated that depending on the situation, it might modify the instructions.

About Raigad Sahakari Bank:

On September 30, 1960, the Raigad Sahakari Bank or Raigad District Central Co-operative Bank was founded. The bank received a banking licence from the Reserve Bank of India on November 11th, 1995. In 1997, Jayant Prabhakar Patil (MLC) became the bank’s chairman. It was introduced on May 18, 2013, and is the first District Cooperative Central Bank in India to offer the Kisan Credit Card.

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