IGI Logo

The Reserve Bank of India has issued several directions to Raigad Sahakari Bank, Mumbai, including an upper limit on withdrawal by depositors. A sum not exceeding Rs 15,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, the central bank said in a statement on Monday.

Reportedly, the Mumbai-based bank is going through financial stress. Further, from the close of business on Monday, the bank shall not, without prior approval of the RBI, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in the discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.

However, it clarified that these directions by the RBI should not be construed as a cancellation of a banking license. "The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these directions depending upon circumstances," it added. These directions shall remain in force for a period of six months from the close of business, and are subject to review