The Reserve Bank of India (RBI) has imposed severe sanctions on Kerala's Thodupuzha Urban Co-operative Bank. Customers have been prohibited from withdrawing funds from their accounts as a result of this. Because of this cooperative bank's poor financial situation, the central bank has put several limitations on it. The Reserve Bank stated in a statement released on Wednesday that this limitation will take effect on August 23, 2022, at the close of business.
According to PTI, following the RBI's move, the bank would no longer be allowed to make new loans or renew existing ones without the consent of the Reserve Bank. Aside from that, the bank will be prohibited from making any new investments or accepting new deposits.
Withdrawals from all depositors' savings, current, or other accounts have been prohibited due to the bank's present liquidity status, according to the RBI. However, the loan can be paid using the funds placed in the client's accounts.
The Reserve Bank stated in its statement that these limits and stringent directives do not imply that Thodupuzha Urban Co-operative Bank's license has been revoked. It is worth noting that the Reserve Bank of India (RBI) recently took action against eight cooperative banks for breaking many norms.
Mehsana Urban Co-operative Bank, Varud Urban Co-operative Bank in Maharashtra, District Co-operative Central Bank Maryadit in Madhya Pradesh, and Chhattisgarh State Co-operative Bank Maryadit in Raipur are among them.
The Reserve Bank of India has lifted all restrictions on American Express Banking Corp. According to a statement made by the central bank, new users can now be added to the company's card network. After 16 months, the Reserve Bank removed the ban on American Express. As a result, the firm is no longer subject to any commercial constraints.
The central bank put limits on American Express Banking Corp. last year on April 23, 2021. According to the RBI, this action was taken against American Express for breaking payment system collection guidelines.