The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021.
As per RBI's directions, the co-operative bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, IANS said.
The bank would also not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.
Further, the central also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account.
The restrictions were first imposed in May, 2019 and have been extended thereafter. It was last extended till May 7, 2021.
RBI had said earlier that the inspection report of Millath Co-operative Bank, based on its financial position as on March 31, 2019, revealed inter alia, violation/non-compliance with the directions on permitting of withdrawals in excess of the stipulated amount and sanctioning of fresh loans and advances in violation of directions issued under Supervisory Action Framework (SAF), PTI said.
"A penalty of Rs 10 lakh has been imposed on Millath Co-operative Bank for "non-adherence/violation of all inclusive directions and other directions imposed on the bank", the Reserve Bank of India (RBI) said in a statement.