• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RBI puts Rs 1,000 withdrawal cap on Karnataka Deccan Urban Co-op Bank; fresh loans, deposits restricted

|
Google Oneindia News

Mumbai, Feb 19: The Reserve Bank on Friday said it has barred Karnataka-based Deccan Urban Co-operative Bank Ltd from granting fresh loans or accepting deposits and customers cannot withdraw more than Rs 1,000 from their savings account for a period of six months.

RBI puts Rs 1,000 withdrawal cap on Karnataka Deccan Urban Co-op Bank; fresh loans, deposits restricted

The lender has also been asked not to make fresh investments or incur any liability without its prior permission. The RBI said it issued the directions to chief executive officer of the bank on Thursday (February 18). It has also asked the lender to desist from disbursing any payment whether in discharge of its liabilities or otherwise, or dispose of any of its assets except as notified in the RBI direction.

"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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn," RBI said in a release on Friday. It said customers can set off their loans against deposits subject to conditions.

RBI issues draft guidelines on credit default swapsRBI issues draft guidelines on credit default swaps

"However, 99.58 per cent of the depositors are fully covered by the DICGC insurance scheme," said the regulator. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of RBI, provides insurance cover on bank deposits.

The RBI further said putting the bank under restrictions should not be construed as cancellation of its banking license.

The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of the directions depending upon circumstances. The directions are set to remain in force for six months from the close of business on February 19, 2021 and are subject to review, it added.

For Daily Alerts
Best Deals and Discounts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X