According to the RBI directive, customers of Deccan Urban Co-operative Bank will not be able to withdraw more than Rs.1000.
The Deccan Urban Co-Operative Bank Ltd of Karnataka is the latest to come under RBI embargo. On the evening of 19 February, the Reserve Bank of India imposed restrictions on the withdrawal for Deccan Urban Co-operative Bank customers. This restriction will remain in force for 6 months at present. RBI has started investigating the bank administration.
Withdrawal of more than Rs 1000 Not Allowed
According to the RBI directive, customers of Deccan Urban Co-operative Bank will not be able to withdraw more than Rs.1000. The restrictions will be applicable on all types of accounts, be it a Saving Account or Current Account. Currently, these restrictions have been imposed for 6 months. RBI said that the financial position of the bank will be reviewed after which further decision will be taken.
Deccan Urban Co-operative Bank of Karnataka will no longer be able to offer new loans to customers. Apart from this, no more money will be deposited in the bank. RBI has taken this decision in view of the cash position of the bank. All the transactions of Deccan Urban Co-operative Bank are being investigated. RBI’s effort is to maintain a balance between deposits and withdrawals so that there is no risk of bank sinking
Bank license not cancelled
RBI has made it clear that Deccan Urban Co-operative Bank has been put under restrictions for the purpose of investigation but the license of the bank has not been cancelled. This means that the money of the customers is completely safe now, but they cannot withdraw money on their own free will. The RBI has also appealed to the customers of the bank to ignore any rumours.