Ahmednagar: The Reserve Bank of India’s six-month ban on the operation of Nagar Urban Multistate-Scheduled Bank has now been extended for another three months. The RBI’s restrictions on the bank will remain in place till September 6. After a two-and-a-half year administrative career, on the recommendation of the Reserve Bank, the Central Registrar of Co-operatives conducted the election of Nagar Urban Bank in November 2021 through the State Co-operative Department. Only the director who was accused of causing the bank trouble in that election came back to power. Just six days after the incumbents took office on December 1, the Reserve Bank of India (RBI) imposed restrictions on the operations of the Nagar Urban Bank.
Depositors and account holders will be able to withdraw up to Rs 10,000 at a time, new deposits will not be accepted, new and old loans will not be allowed, new loans will not be disbursed, savings and current account transactions will not be allowed. These restrictions were for six months. It expired on June 6, 2022. However, the order was immediately withdrawn and it was extended for three months.
Rajendra Gandhi, head of the Nagar Urban Bank Rescue Action Committee and former director, has demanded the immediate resignation of the current board of directors as the Reserve Bank of India (RBI) has extended its sanctions on the city for another three months. This is a failure of the Board of Directors as there is no concession for depositors and account holders in the new RBI order and the same restrictions have been maintained. In the last six months, these directors have made no effort to improve the bank and recover the arrears. Therefore, taking responsibility for all these failures and in the face of harassment of depositors and account holders, the Director General should resign and request the Reserve Bank to return the bank to the administrators, Gandhi said.
