Current Affairs - Banking - Discussion

Reserve Bank of India (RBI) has placed Mumbai-based City Co-operative Bank under directions, owing to which, its customers will not be allowed to withdraw more than Rs. 1000 per deposit account. In addition to withdrawal restrictions, City Co-operative Bank would not be able to accept fresh deposits, disburse loans, make any investment, or borrow funds without RBI approval. In context of this news, it is important to note that City Co-operative Bank's net non-performing assets stood at 8.84 per cent of advances. However, RBI has clarified that issue of the directions should not be construed as cancellation of banking licence of City Co-operative Bank and it will continue to undertake banking business with restrictions till its financial position improves.