This story is from November 10, 2021

RBI restricts withdrawals from Yavatmal’s Bapuji Datey Mahila Coop Bank

RBI restricts withdrawals from Yavatmal’s Bapuji Datey Mahila Coop Bank
Yavatmal: The Reserve Bank of India (RBI) has imposed various restrictions on Yavatmal-based Babuji Datey Mahila Cooperative Bank Ltd under section 35A read with section 56 of the Banking Regulations Act, 1949. The restrictions came into force from Tuesday, November 9.
The RBI restrictions state that the bank is allowed to let its savings account holders withdraw only Rs5,000 in the next six months.
Besides, the bank is restricted from accepting any fresh deposits without the prior permission of RBI.
The directions add that considering the bank’s liquidity position o account holder can withdraw a sum exceeding Rs5,000 of the total balance across all savings bank or current accounts for the next six months. The bank has been in heavy losses and reported NPAs to the extent of over Rs200 crore.
There was heavy rush of concerned depositors at the bank on Tuesday itself. No senior officials or directors were present at the bank, which added to confusion among depositors.
Chief officer Sujata Mahajan later confirmed the RBI action and said there was failure in recovery of loans, which led to the RBI action. “We have expedited recovery proceedings and in next two months we shall recover the defaulted amount, and recoup the current situation,” she said, appealing to depositors not to panic as their money is safe.
Deputy registrar of cooperatives Ramesh Katke said he has limited control over cooperative banks as they are governed by RBI. “Today, I summoned a meeting of the Board of Directors and instructed them to act strictly by the rules, which they agreed to comply with hereafter,” Katke said and urged the public not to panic. Their deposits are safe and the current situation will be overcome within two months, he added.

Bank account holder Akhtar Firdos Mohd Razak had launched an indefinite hunger strike in front of the main branch of the bank from October 25 with his family. He claims to have incurred heavy losses due to faulty service of the bank, which made him a defaulter. He accused bank directors of giving loans to their favourites recklessly, which caused heavy loss to the bank.
The bank said Razak is angry because of recovery proceedings by the bank after he defaulted on his loan.
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