The central banker has placed curbs on the business activities of Mumbai-based City Co-operative Bank.
The Reserve Bank of India has also directed that customers of the cooperative bank will not be allowed to withdraw more than Rs. 1000 per deposit account.
According to a RBI statement, the depositors will be allowed to withdraw a sum not exceeding Rs. 1000 of the total balance held in every saving bank or current account.
It has also been mentioned that the City Co-operative Bank will need to have prior approval from the central bank before it can accept fresh deposits, disburse loans, make any investment, or borrow funds.
It is said that the bank will continue to undertake banking business with restrictions till its financial position improves.
According to City Co-operative Bank’s website, as on March 2016, its deposit base was Rs. 534 crore and it had advances of Rs. 363 crore.
It has also revealed that the net non-performing assets stood at 8.84 per cent of advances.>