The Reserve Bank of India (RBI) has modified directions issued to the Bhopal Nagrik Sahakari Bank Ltd., Bhopal (M.P.). The bank has been under directions since November 01, 2012 vide directive No. UBD.CO.BSD.-II No./D-20/12.27.002/2012-13 dated October 29, 2012. The validity of the directions had been extended from time to time for a period of six months, subject to review, latest being from November 01, 2015 to April 30, 2016. In terms of the existing directions, among other conditions, a sum not exceeding ₹ 1,000/- of the total balance in every savings bank or current account or any other deposit account by whatever named called, was allowed to be withdrawn by a depositor.

The Reserve Bank of India has reviewed the financial position of the said bank and has considered necessary in the public interest to modify the aforesaid directions. Accordingly, the Reserve Bank of India in exercise of powers vested in it under sub-section (1) and (2) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to the Co-operative Societies) hereby directs that – Paragraph 1(i) of the Directive so issued to Bhopal Nagrik Sahakari Bank Ltd., Bhopal on October 29, 2012 be modified as under :-

1. A sum not exceeding ₹ 50,000/- (Rupees fifty thousand only) in every savings bank account or current account or term deposit account or any other deposit account (by whatever name called); may be allowed to be withdrawn by depositor, provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, including loans against deposits, the amount may be adjusted first to the relevant borrowal account/s.

Such modifications have been granted with a view to reducing the hardship to the depositors and taking various other factors into consideration. The modification of the directive by Reserve Bank of India should not per se construed as improvement or deterioration in the financial position of the bank. All other restrictions, conditions and provisions contained in the Directive dated October 29, 2012 issued to Bhopal Nagrik Sahakari Bank Ltd., Bhopal shall remain unchanged. A copy of directive is displayed at the bank’s premises for the perusal of public.

The Reserve Bank of India may consider modification of these directions depending upon circumstances.

Ajit Prasad
Assistant Adviser

Press Release : 2015-2016/2224