With imposition of restrictions on Jaiprakash Narayan Nagari Sahakari Bank, Basmatnagar, depositors will not be able to withdraw funds from their accounts, the central bank said in a statement
The second-largest lender among the urban cooperative banks had reported a net profit of Rs 150.21 crore in the year-ago period.
The Reserve Bank of India has issued a master circular where the housing loan limits were essentially doubled for urban cooperative banks. It also announced other changes reducing the exposure limits of UCBs.
The guidelines governing the maximum permissible loan limits for cooperative lenders were last reviewed over a decade ago.