Action on two banks in 24 hours, RBI imposes ban on this bank after Lakshmi Vilas

New delhi date. Wednesday 18 November 2020

The Reserve Bank of India has banned one more bank after Lakshmi Vilas. However, the ban has been imposed on Manta Urban Co-operative Bank in Jalna district of Maharashtra. According to the RBI, it has given some instructions to the bank. Which will be effective for six months after the bank closes on November 17, 2020.

According to the directive, the bank will not be able to lend or renew old debts or make any investments without the permission of the RBI. The bank is also banned from accepting new deposits. He will not be able to make any payment and will not be able to settle any non-payment. However, the RBI has not stated the basis of the ban.

In September last year, the Reserve Bank of India (RBI) came to know about the alleged scam in Punjab and Maharashtra Co-operative Bank. The RBI had banned the bank in the wake of the scam. To protect the bank from crisis, the RBI had on September 24, 2019 imposed a moratorium on cash withdrawals.

Lakshmi Vilas has also been banned

Private sector Lakshmi Vilas Bank, which was earlier going through a financial crisis, has been banned for a month. Under the ban, any bank account holder will be able to clear up to a maximum of Rs 25,000. This step has been taken in view of the financial condition of the bank. The Reserve Bank of India (RBI) said in a statement that the decision was taken in the interest of the depositors in case the bank did not submit a credible recovery plan. At the same time, the interests of banking and financial sector stability have been taken into account.

The central bank said there was no alternative. Therefore, under Section 45 of the Banking Regulation Act, 1949, the Central Government has banned private sector banks. Lakshmi Yes Vilas Bank has become the second largest private sector bank to face difficulties this year after Yes Bank. Yes Bank was banned in March. The government then rescued Yes Bank with the help of State Bank of India. SBI had invested Rs 7,250 crore instead of its 45 per cent stake in Yes Bank.