Since October 2018, Mumbai-based The Needs of Life Co-operative Bank Ltd has been under restrictions imposed by the banking regulator, Reserve Bank of India (RBI). As per the recent order, this curb has been extended further until October 31, 2021.
In October 2018, RBI barred the bank from granting or renewing any loan for six months and later extended the curbs many times. According to the 2018 directions, depositors were allowed to withdraw a sum not exceeding Rs 1,000 of the total balance held in every saving bank or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI directions.
The bank was allowed to continue to undertake banking business with restrictions till "its financial position improves".
The regulator stated, “The validity of the directions was extended from time-to-time, the last being up to April 30, 2021.”
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RBI stated in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, the curbs have been imposed. The bank stated, “All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated April 26, 2021 notifying the above extension is displayed at the bank’s premises for the perusal of the public.”
This Fountain-based Co-operative Bank's name had appeared in a fraud in 2016.
