Action on two banks in 24 hours, after Laxmi Vilas, RBI imposed ban on this bank too

The Reserve Bank of India (RBI) continues its strictness to improve the banking system. Under this, the RBI has banned two banks within 24 hours.

Action on two banks in 24 hours, after Laxmi Vilas

The Reserve Bank of India (RBI) has banned another bank after Laxmi Vilas. However, this ban is on the Manta Urban Co-operative Bank in Jalna district of Maharashtra. According to the RBI, it has given some instructions to this bank, which will be effective for six months from the bank’s closure on November 17, 2020.

According to these instructions, this bank will not be able to make any loan or loan without the permission of RBI nor will it be able to renew or make any investment in old loans. Bank has also been banned for accepting new deposits. He will not be able to make any payment nor can make any agreement to pay. However, the RBI has not given the basis for the ban.

Let us tell you that in September last year, the Reserve Bank had come to know about the alleged scam in Punjab and Maharashtra Co-operative Bank (PMC). The bank had banned the bank as soon as the scam surfaced. To save the bank from crisis, the RBI imposed a limit or moratorium on withdrawal of money on 24 September 2019.  

Laxmi Vilas is also banned. 
Earlier, private sector Laxmi Vilas Bank, which is going through financial crisis, has been banned for a month. In this ban, any bank account holder can withdraw up to Rs 25,000. This step has been taken in view of the bad financial condition of the bank. The Reserve Bank of India said in a statement that it has been decided in the interest of the depositors in case the bank does not present a reliable revival plan. Also, the interests of stability of banking and financial sector have also been taken care of.