RBI restricts banking operations of Kapol Co operative Bank

Depositors of The  Kapol Co-operative Bank were permitted to drawn amount only upto Rs. 3,000 from their Savings Bank and Current Bank Account as per Reserve Bank of India directives.

Also, RBI added that Kapol Co-operative Bank was in troubled waters, and thus barred the bank from granting or renewing any loans or advances without permission in writing from Reserve Bank of India.  Further, the bank is not permitted to make any further investment, or incur any liability, which includes borrowing of funds and acceptance of fresh deposits, which required RBI’s prior permission.

However, RBI confirmed that it had not cancelled the bank’s license.  RBI permitted the bank to continue with the banking business, with these restrictions imposed herein, till the bank’s financial position shows an improvement.

Author: Admin Bankedge

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