RBI said that the ban on the bank should not be taken to mean that its bank license is being canceled. The bank will continue to do business as before until the financial situation improves.
The Reserve Bank of India (RBI) has taken a big decision regarding the Deccan Urban Co-op Bank of Karnataka. The RBI has banned the Deccan Urban Co-operative Bank from offering new loans or accepting deposits. Also, customers have been banned from withdrawing more than 1,000 from their savings account. This instruction is for the next six months. The cooperative bank is also prohibited from taking any new investment or new liability without prior approval.
Big news for senior citizens! TDS cannot be deducted on such income from FD interest
RBI said that it gave this instruction to the Chief Executive Officer (CEO) of the bank on Thursday (February 18). The central bank said in a release, “In view of the current cash position of the bank, depositors cannot be allowed to withdraw more than Rs 1,000 from all savings accounts or current accounts.” According to RBI, customers settle their debt deposits. On the basis of This is subject to certain conditions.
Instructions will continue for six months
However, the regulator said that 99.58 percent depositors are under the deposit insurance and loan guarantee corporation insurance corporation (DCGC) scheme. DCGC is a full-fledged subsidiary of RBI. This bank provides insurance on deposits. RBI said that the ban on the bank should not be taken to mean that its bank license is being canceled. The bank will continue to do business as before until the financial situation improves. These instructions will be in effect for six months from the evening of February 19, 2021, which will depend on further review.
Government brought the co-operative banks under RBI supervision
Cooperative banks are set up under the State Cooperative Societies Act for the purpose of providing facilities for agriculture and rural areas in the country. These are registered with the Registrar of Co-operative Societies. Last year, the government took a big decision on co-operative banks and brought it under the supervision of the Reserve Bank (RBI).
Earlier this month, the RBI had stopped withdrawing money from Maharashtra’s Nashik Situation Independence Co-operative Bank Limited. After the ban, the RBI had said that 99.88 percent of the bank’s depositors are fully covered by the Deposit Insurance and Credit Guarantee Corporation Insurance Scheme.
