Under the insurance scheme, each depositor of the bank is entitled to receive the deposit insurance claim amount from the DICGC (Deposit Insurance and Credit Guarantee Corporation) on their deposits up to Rs 5 lakh.
Mumbai. The Reserve Bank of India Limited, an independent co-operative bank based in Nashik, Maharashtra. (Independence Co-operative Bank) has banned the withdrawal of money. The RBI said in a statement on Wednesday that although 99.88 percent of the bank’s depositors are fully covered by the Deposit Insurance and Credit Guarantee Corporation insurance scheme. Withdrawal
for six months The
withdrawal will be banned for a period of six months. RBI said, “In view of the current cash position of the bank, depositors will not be allowed to withdraw any amount from the savings or current account or any other account. Can settle the debt in lieu of customer deposits, which is dependent on certain conditions. ”
The RBI has imposed more restrictions after the end of trading hours on Wednesday. Under this, the Chief Executive Officer of the bank will not give any loan or renew without the prior approval of RBI. Apart from this, they will not make any investment nor make any payment.
Banking business will continue as before
, according to RBI, the bank will continue to do its banking business with restrictions. This restriction will remain until the financial situation improves. The central bank also said that it can amend the instructions according to the situation.
DICGC
Deposit insurance and credit guarantee corporation is guaranteed by deposits of up to Rs 5 lakh in banks. DICGC is a subsidiary owned by the Reserve Bank of India, which provides insurance cover on bank deposits. According to the provisions of deposit insurance of 5 lakhs, the amount of up to Rs 5 lakhs is paid to the depositor, irrespective of how much money is deposited in the bank, if the bank goes bankrupt or its license is canceled.
