Days after the Reserve Bank of India (RBI) capped to 35,000 the withdrawal limit of Sri Guru Raghavendra Sahakara Bank in Bengaluru, BJP MP Tejasvi Surya has sought to calm down panicked depositors of the co-operative bank and said Finance Minister Nirmala Sitharaman was personally monitoring the issue. Taking to Twitter, Tejasvi Surya wrote, “I want to assure all depositors of Sri Guru Raghavendra Co-operative Bank to not panic. Hon’ble Finance Minister Smt. @nsitharaman is appraised of matter & is personally monitoring the issue. She has assured Govt will protect interests of depositors. Grateful for her concern.”

The Bengaluru South MP also attached a letter in his tweet where he had appraised the finance minister of the situation.


Watch: RBI imposes restrictions on Bengaluru bank, BJP MP says no need to panic

RBI had, on 10 th January imposed certain restrictions on Sri Gururaghavendra Sahakara Bank Niyamitha. “…As from the close of business on January 10, 2020, the aforesaid bank shall not… grant or renew any loans and advances, make any investment… In particular, a sum not exceeding 35,000 of the total balance in every savings bank or current account or any other deposit account may be allowed to be withdrawn subject to conditions…” the RBI said in a statement uploaded on its website.

In September, RBI had imposed regulatory restrictions on the PMC Bank for six months over alleged financial irregularities. The RBI had asked the bank not to grant or renew any loans and advances, make any investment or incur any liability, including borrower of funds and acceptance of fresh deposits.

Subsequently, the RBI capped the withdrawal limit for the PMC Bank depositors to 1,000 which was gradually increased to 50,000.

Source link