InvestorQ : Why has the RBI now put a bar on People Cooperative Bank of Kanpur?
sarah Leo made post

Why has the RBI now put a bar on People Cooperative Bank of Kanpur?

Answer
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vidhya Laxmi answered.
3 months ago


RBI said it has barred Kanpur-based People's Co-operative Bank from granting fresh loans and accepting deposits for six months in the light of its weak financial position. The RBI also stipulated that no withdrawal of amount of a depositor will be allowed from the co-operative bank. The banks shall also commit not to issue any fresh loans and advances. The RBI, in addition, has also barred the bank from selling, transferring or disposing any of its properties or assets. Unlike in previous cases, the bank depositors are not even being allowed to with the basic minimum amounts that they may require. These directions will lbe effective from the evening of June 10 and will be applicable for a period of 6 months.