Reserve Bank on Thursday said that he had imposed several restrictions, including the withdrawal of funds, in two cooperative banks based in Uttar Pradesh given their deteriorating financial position.
The two lenders are Lucknow Urban Co-Operative Bank and Urban Co-Operative Bank Limited, Sitapur.
Restrictions based on the laws of banking regulations will remain valid for six months.
Urban Lucknow Cooperative Bank customers will not be able to withdraw more than RS 30,000, according to RBI’s statement.
The withdrawal limit in the case of urban cooperative banks is RS 50,000 per customer, he said in another statement.
Both banks, without RBI permission, cannot provide loans, invest in any investment, subject to any responsibility – including loans and receipts of new deposits, eliminating or removing property or assets.
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