While the country is reeling from cash shortage of the likes it has never seen before, the RBI has tightened the whip on the City Co-Operative Bank, Mumbai. The Central Bank issued orders that the bank’s customers should not be permitted to withdraw over Rs 1000 cash from their accounts, whether saving accounts or current accounts, or from other deposits.
These orders were issued on April 18. The RBI has further issued instructions that the City Co-Operative Bank must seek the RBI’s permission before opening new bank accounts or approving new loans. These restrictive orders have sent a ripple of panic across the country. Citizens fear that such restrictions may soon be extended to other banks in India. The government is yet to comment on the RBI’s orders.
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