RBI imposes restrictions on Sarvodaya and National Urban Co-operative Bank:

RBI imposes restrictions on Sarvodaya and National Urban Co-operative Bank The Reserve Bank of India (RBI) has placed restrictions on two cooperative banks: National Urban Co-operative Bank Ltd. in Pratapgarh, Uttar Pradesh, and Sarvodaya Co-operative Bank in Mumbai, in an effort to protect depositors' interests. Due to Sarvodaya Co-operative Bank's failing financial situation, the RBI has set a withdrawal cap of Rs. 15,000 for its customers. As of right now, consumers can only take out a maximum of Rs.15,000 from their accounts. Furthermore, without RBI permission, the bank is not allowed to make investments, extend credit, or take on any liabilities. Nonetheless, in the event of a financial loss, qualified depositors may receive up to Rs.5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Depositors of Indian banks are covered by deposit insurance under DICGC. DICGC guarantees that depositors get compensation for their deposits up to a predetermined amount in the event of a bank failure, closure, or the implementation of restrictions similar to those stated in the news story. Similarly, the RBI has set a 10,000 rupee limit on withdrawals for National Urban Co-operative Bank Ltd. customers in Pratapgarh, Uttar Pradesh. The decision was made in view of the bank's deteriorating financial situation. Depositors of this bank, like those of Sarvodaya Co-operative Bank, are qualified to receive up to Rs.5 lakh from DICGC. Without RBI's approval, the bank is not allowed to make investments, give loans, or make payments. These Directions shall remain in force for a period of six months from the close of business on April 15, 2024, and are subject to review.