With curbs in place, the cooperative bank, without approval of the RBI, cannot grant loans, make any investment, and disburse any payment. The lender cannot also dispose of any of its properties, among others.
“In particular, a sum not exceeding Rs 5,000 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn…,” the RBI said.
Further, it said that eligible depositors would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation.
The RBI, however, said the directions should not per se be construed as cancellation of the banking licence.
“The bank will continue to undertake banking business with restrictions till its financial position improves,” it said, adding that it may consider modifications of the directions depending upon circumstances.