Karnataka-based Deccan Urban Co-operative Bank Ltd has been barred by the RBI for granting new loans or accepting deposits. The customers will not be able to withdraw more than ₹1,000 from their savings account for the next six months.
The bank also cannot make fresh investments or incur any liability without prior permission from the RBI. The instructions were issued to the CEO of the bank on Thursday
“Considering the bank’s present liquidity position, a sum not exceeding ₹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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn,” RBI said in a statement released on Friday.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) has fully covered 99.58 per cent of the depositors under its insurance scheme.
The bank will continue with the restrictions till its financial position improves.
