Image Source : PTI RBI imposes restrictions on THIS financial institution, withdrawals for purchasers capped
The Reserve Bank on Friday mentioned it has barred Karnataka-based Deccan Urban Co-operative Bank Ltd from granting contemporary loans or accepting deposits and prospects can’t withdraw greater than Rs 1,000 from their financial savings account for a interval of six months. The lender has additionally been requested to not make contemporary investments or incur any legal responsibility with out its prior permission.
The RBI mentioned it issued the instructions to chief government officer of the financial institution on Thursday (February 18).
It has additionally requested the lender to desist from disbursing any fee whether or not in discharge of its liabilities or in any other case, or get rid of any of its belongings besides as notified within the RBI course.
“Considering the bank’s present liquidity position, a sum not exceeding Rs 1000 only of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn,” RBI mentioned in a launch on Friday.
It mentioned prospects can set off their loans towards deposits topic to situations.
“However, 99.
58 per cent of the depositors are absolutely lined by the DICGC insurance coverage scheme,” mentioned the regulator.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of RBI, gives insurance coverage cowl on financial institution deposits.
The RBI additional mentioned placing the financial institution beneath restrictions shouldn’t be construed as cancellation of its banking license.
The financial institution will proceed to undertake banking enterprise with restrictions until its monetary place improves.
The Reserve Bank could think about modifications of the instructions relying upon circumstances.
The instructions are set to stay in pressure for six months from the shut of enterprise on February 19, 2021 and are topic to overview, it added.
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