RBI restricts withdrawals from THIS bank, 99.84% depositors covered under DICGC scheme
Zee News
The RBI said the restrictions will remain in force for a period of six months from the close of business on May 13, 2022.
New Delhi: The RBI on Friday imposed several restrictions on Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur, including on withdrawals, in view of the lender's worsening financial position.
However, 99.84 per cent of the depositors are fully covered by the DICGC insurance scheme. Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme, deposits of up to Rs 5 lakh are insured.
The RBI, in a statement, said the restrictions will remain in force for a period of six months from the close of business on May 13, 2022 and are subject to review.
"Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions...," it said.
It further said the issuance of the directions should not per se be construed as cancellation of the banking licence by RBI.
