RBI issues Directions to Maratha Sahakari Bank Ltd., Mumbai, Maharashtra – Relaxation in payment of deposit

Maratha Sahakari Bank Ltd., Mumbai, was placed under directions for a period of six months vide directive dated August 31, 2016 from the close of business on August 31, 2016. In terms of the said 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balance in every savings bank or current account or any other deposit account by whatever name called was allowed to be withdrawn by a depositor.

The Reserve Bank of India, in exercise of the powers vested in it under sub-section (1) and (2) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that – item (i) of paragraph 1 of the Directive so issued to Maratha Sahakari Bank Ltd., Mumbai on August 31, 2016 be modified vide order dated September 07, 2016 as under:

“A sum not exceeding ₹ 5,000/- (Rupees five thousand only) of the total balance, in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by depositor, provided that wherever such depositor is having liability to the bank in any manner, i.e. either a borrower or surety, the amount may be adjusted first to the relevant borrowal account/s.”

All other restrictions, conditions and provisions contained in the Directive dated August 31, 2016 issued to Maratha Sahakari Bank Ltd. Mumbai shall remain unchanged and shall continue to be valid for a period of six months from the close of business on August 31, 2016 and subject to review. A copy of the modified directive under reference dated September 07, 2016 is displayed at the bank’s premises for the perusal of public.

The aforesaid modification, should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.