Saturday, February 27, 2021
Home Business News RBI puts Rs 1,000 withdrawal cap on Deccan Urban Co-op Bank; fresh...

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


MUMBAI: 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.
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 1,000 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn,” RBI said in a release on Friday.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.
“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.



Source link

Avatar
Sahilhttp://digitalguruji.org
In this blog our main motive is to provide you all kind of latest information about technology, politics, sports, and health. If you want to read this information then you should have to visit our website. This information will help you to increase your knowledge.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

IIT JAM Answer Key 2021 released at jam.iisc.ac.in; download here – Times of India

NEW DELHI: Indian Institute of Science (IISc), Bengaluru has on Friday, February 26, 2021 released the IIT JAM Answer Key on its official...

Why early childhood education needs a re-think – Times of India

The National Education Policy (NEP) 2020 has been pushing for those involved in early childhood education to re-examine the way the minds of...

TN TRB Special Teacher recruitment 2021 notification released, apply from March 31 for 1598 posts – Times of India

NEW DELHI: Teachers Recruitment Board, Chennai, Tamil Nadu has released a notification inviting applications only through online mode for the direct recruitment of...

‘US owes India $216 billion as American debt soars to $29 trillion’ – Times of India

WSHINGTON: The US, the world's largest economy, owes India $216 billion in loan as the country's debt grows to a record $29 trillion,...

Recent Comments