Mumbai:
The Union
government, on recommendations of the Reserve Bank of
India (RBI), has extended the moratorium on Benares State
Bank by one more month.
The order to this effect was passed on 22 January under section
45(2) of the Banking Regulation Act, 1949. It will remain in force
up to and inclusive of 21 April 2002, according to an RBI
communiqu.
During the period of moratorium, the bank has been permitted to
make only those payments as have been specified in the order dated
25 September 2001.
The
earlier order, which is still in force, was initially
imposed for a period of six months. It is valid up to
March this year. In the interim, the RBI decided to extend
it by a month up to 21 April 2002.
The
bank was issued certain directives by the RBI in September
2001, which prohibited the bank from incurring fresh liabilities
and also limiting withdrawals from the deposit accounts
to a maximum of Rs 1,000. The withdrawal limit was subsequently
enhanced to Rs 2,500, effective from 13 October 2001.
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