RBI imposes economic sanction on Youth Development Bank

RBI imposes economic sanction on Youth Development Bank

Kolhapur: The Reserve Bank of India (RBI) has imposed economic sanction on Youth Development Cooperative Bank for rising NPA beyond the limitation from Monday. It has freezed all accounts of the banks and its branches and allowed account holders to withdraw only Rs 5,000 for once in six months period. Receiving a notice to this effect from the RBI, R P Patil, bank chairman and Arun Narke, senior director and former president of the bank said the bank administration received the notice on Monday. However, both claimed that there was nothing to worry about the financial position of the bank, which was a very strong. Mr Narke said that RBI took this action only for six month period and if the outstanding areas of defaulters, would extract within a month's period, then the RBI could relax the economic sanction .

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