RBI imposes restrictions on cash withdrawal and loan sanction from Seva Vikas Bank – Punekar News

Pune, 13 October 2021: The Reserve Bank of India (RBI) has imposed restrictions on the withdrawal of money from Seva Vikas
Cooperative Bank Limited, Pune.

In accordance with the notification, effective from the close of business on October 12, 2021, the bank shall not, without the prior approval of RBI in writing, grant or renew loans and advances, make investments, incur liability, including borrowing funds and accepting new deposits, disbursing or agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, entering into any compromise or arrangement and selling, transferring or otherwise disposing of any of its property or assets, except as notified in the RBI Directive dated October 12, 2021.

A copy of the notice is posted on the premises of the bank for inspection by interested members of the public. A sum not exceeding Rs 1000 of the total balance of all savings or current bank accounts or any other account of a depositor may be permitted to be withdrawn subject to the conditions set out in the RBI instructions above.

The RBI has clarified that the issuance of the above instructions by the RBI should not in itself be construed as a cancellation of the banking license by the RBI. The bank will continue to undertake banking activities with restrictions until its financial situation improves. The Reserve Bank may consider modifications to these guidelines as circumstances dictate.

These guidelines will remain in effect for a period of six months from the close of business on October 12, 2021 and are subject to review, said Yogesh Dayal, Chief Managing Director, RBI.

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