Yavatmal: Reserve Bank of India (RBI) has imposed a variety of restrictions on Babyuji based on Yavatmal Bank Cooperative Based LTD RBI restrictions stated that banks were allowed to let their savings account holders only attract RS5,000 in the next six months.
In addition, the bank is limited to receiving fresh deposits without previous permission from the RBI.
The direction added that considering the Bank’s liquidity position o account holder can attract a number that exceeds the RS5,000 of the total balance in all savings banks or the Giro for the next six months.
The bank has resigned severe losses and reported NPA so far more than RS200 Crore.
There was a rush of depositors related to the bank on Tuesday itself.
There are no senior officials or directors present at the bank, which adds confusion between depositors.
The head of the Sujata Mahajan officer then confirmed RBI’s actions and said there was a failure in the recovery of the loan, which led to the RBI action.
“We have accelerated the recovery process and in the next two months we will restore the default number, and replace the current situation,” he said, it was interesting for depositors not to panic because their money was safe.
The Deputy Registrar of Cooperative Ramesh Katke said he had limited control over cooperative banks because they were arranged by the RBI.
“Today, I call the board of directors’ council meetings and instruct them to act strictly with the rules, which they agree to comply next,” Katke said and urged the public to not panic.
Their deposit is safe and the current situation will be overcome within two months, he added.
Akhtar Firdos Bank Account Holder Mohd Razak has launched a hungry strike that is not limited in front of the Bank’s main branch from October 25 with his family.
He claimed to have caused a big loss because of the services of the wrong bank, which made him absent.
He accused the Bank Director to provide loans to their favorites carelessly, which caused a big loss to the bank.
The bank said Razak was angry because of the recovery process by the bank after he failed to pay the loan.