The Reserve Bank of India (RBI) has levied business restraints on five cooperative banks which has come into the effect from February 24 referring to feeble financial status.

These banks include HCBL Co-operative Bank Ltd, Uravakonda Co-operative Town Bank Ltd, Adarsh Mahila Nagari Sahakari Bank Maryadit, Shimsha Sahakara Bank Niyamitha and Shankarrao Mohite Patil Sahakari Bank Ltd respectively falling under the purview of the RBI restraints.

The RBI mentioned that the banks are not in the position to approve new deposits or lend loans without the prior sanction of the Central Bank. The RBI has now imposed partial deposit withdrawal restraints on three of the the aforementioned banks while the rest two have witnessed an absolute harness.

The central bank said that the eligible depositors would be qualified to claim insurance deposit for amount up to Rs 5 lakh on the lines of the submission of willingness by the listed depositors. However, the central bank stated that the directives issued by the RBI in now way implies the cancellation or termination of the Banking License of the banks.