RBI curbs on Bengaluru-based private bank from doing business

Bengaluru: The Reserve Bank of India (RBI) has curbed a Bengaluru-based private bank from doing business with immediate effect for alleged irregularities in transactions, an official said on Saturday.

“Sri Guru Raghavendra Sahakara Bank in Bengaluru shall not, without prior approval of the RBI in writing, grant or renew loans and advances, make investment, borrow funds or accept fresh deposits from January 10, 2020,” the RBI said in a directive, which has been accessed by IANS.

The central bank’s Chief General Manager Yogesh Dayal issued the directive under Sections 35A and 56 of the Banking Regulation Act, 1949, from Mumbai.

The RBI, however, allowed the bank’s savings and current account customers and depositors to withdraw cash up to Rs 35,000 only till further notice. IANS)

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