RBI Imposes Curbs on Bengaluru-Based Shushruti Souharda Sahakara Bank Niyamita

The Reserve Bank of India (RBI) has issued certain Directions to Shushruti Souharda Sahakara Bank Niyamita, Bangalore, in the exercise of powers vested in it under subsection (1) of Section 35 A of the Banking Regulation Act, 1949, read with Section 56 of the Banking Regulation Act, 1949, vide Directive Ref. No. CO.DOS.DSD.No.S98/10-01-023/2022-2023 dated April 07, 2022, whereby, as of the A sum of not more than 5,000 (Rupees 5,000 only) of a depositor’s total balance across all savings bank or current accounts, or any other account, may be withdrawn subject to the criteria indicated in the above RBI Directions.

2. The RBI’s issuance of the aforementioned Directions should not be interpreted as a termination of a banking license. Until its financial situation improves, the bank will continue to conduct banking business with limits. Depending on the circumstances, the Reserve Bank may consider modifying these Directions.

3. These Directions will be in effect for six months from the close of business on April 7, 2022, and will be reviewed at that time.

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