Introduction
In a significant development, the Reserve Bank of India (RBI), the regulatory authority for all banks in India, has dealt a severe blow to a cooperative bank. This move restricts customers of the affected bank from withdrawing excess funds. Let’s delve into the complete story.
Content
Limited Withdrawals for Customers
RBI has imposed restrictions on the Colour Merchants Co-operative Bank, stating that “account holders will not be allowed to withdraw more than ₹50,000 from their deposited amount.” This means that all customers of the Colour Merchants Co-operative Bank can only withdraw up to ₹50,000 from their accounts.
Duration of Restrictions
These restrictions, as per RBI’s statement, will come into effect on September 26 and will remain in place for the next six months.
Implications for Customers
RBI also announced that account holders of this bank will be eligible for deposit insurance of up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation. For more information on this, customers can contact bank officials.
Bank’s Future
RBI emphasized that these restrictions should not be seen as a cancellation of the banking license for the Colour Merchants Co-operative Bank. The bank will continue its operations alongside working on improving its financial situation.
Conclusion
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Frequently Asked Questions: RBI Big Update
What is the full form of RBI?
RBI stands for the Reserve Bank of India.
When was the Colour Merchants Co-operative Bank established?
The Colour Merchants Co-operative Bank was established on July 27, 1970.