Deccan Urban Co-op Bank: RBI puts Rs 1,000 withdrawal limit for next 6 months

Deccan Urban Co-op Bank: RBI puts Rs 1,000 withdrawal limit for next 6 months

New Delhi: The Reserve Financial institution of India has put restrictions on the Deccan City Co-operative Financial institution Ltd from granting contemporary loans or accepting deposits on Friday (February 19).

The Karnataka-based co-operative financial institution clients can’t withdraw greater than Rs. 1,000 from their financial savings account for the following six months. The Reserve bank of India in an announcement mentionedContemplating the financial institution‘s current liquidity place, a sum not exceeding Rs. 1,000 solely of the overall steadiness throughout all financial savings financial institution or present accounts or some other account of a depositor, could also be allowed to be withdrawn.” It additional added that the instructions are set to stay in power for six months from the shut of enterprise on February 19, 2021 and are topic to evaluation.

The Deccan City Co-operative Financial institution Ltd has been prohibited from making any contemporary investments or incur any legal responsibility with out taking permission from the Reserve Financial institution of India.

Nevertheless, 99.58 per cent of the depositors are totally coated by the Deposit Insurance coverage and Credit score Assure Company insurance coverage scheme,” mentioned the central financial institution. The RBI added that placing the financial institution below restrictions shouldn’t be mistaken as cancellation of its banking license.

The Deccan City Co-operative Financial institution Ltd will proceed work below restrictions till its monetary well being improves. The Reserve Financial institution of India will consider modifications within the orders as per the situations.

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