RBI bans Deccan Urban Co-operative Bank Limited.
The Reserve Bank of India said that the ban on the bank should not mean that its bank license is being canceled. The cooperative bank is also prohibited from taking any new investment or new liability without prior approval.
- Last Updated:February 20, 2021, 8:43 AM IS
RBI said that it gave this instruction to the Chief Executive Officer (CEO) of the bank on Thursday. The central bank said in a release that, given 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 can settle their debts on the basis of deposits. This is subject to certain conditions. The regulator said, however, 99.58 percent depositors are under the ambit of Deposit Insurance and Credit Guarantee Corporation Insurance Corporation (DCGC) scheme. DCGC is a full-fledged subsidiary of RBI. This bank provides insurance on deposits.Also read: – Crisis on another bank! RBI prohibits withdrawal of money from Independence Co-operative Bank RBI said that ban on bank should not be taken to mean that his 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 19 February 2021, which will depend on further review.