Depositors affected by panic move around the bank after RBI limits the withdrawal limit

BENGALURU: Depositors affected by panic went to the Sri Guru Raghavendra Cooperative Bank on Tuesday to withdraw their money, days after the Reserve Bank of India (RBI) limited the withdrawal limit to Rs 35,000.

Depositors, mostly senior citizens, were worried about their money deposited in the bank and worried about how long it could take to resolve the situation.

Expressing their disappointment at the bank's response to their concerns, many said they deposited their money in the bank, as it provided an additional interest of 1 percent.

Some depositors even compared the situation with another crisis similar to PMC Bank.

Bank officials said the depositors' money was safe one hundred percent and they are expected to hold a meeting with them on January 19.

One of those meetings that was supposed to be held on Monday could not take place.

The bank president, K Ramakrishna, said the bank has stability and that depositors have no reason to worry or panic.

Affirming that RBI restrictions cited the increase in unprofitable assets (NPA), he said: The NPA during last March was 0.50 percent, but as the numbers for the past eight years have taken, there is some confusion. The restrictions are not permanent. It is temporary in the interest of depositors and the bank ... The license of the banks has not been canceled, he said.

Asking depositors not to be afraid, he also said that the administration promised to fix things and that the bank has a good record of more than 20 years on their part.

He said the bank has not granted any benami loans and has a guarantee of Rs 2,200 crore.

We are in talks with RBI to achieve normalcy ... please don't be scared to hear what others say, he added.

Meanwhile, the deputy from South Bangalore, Tejasvi Surya, said finance minister Nirmala Sitharaman was informed of the matter and was personally monitoring the issue.

I want to assure all depositors of Sri Guru Raghavendra Cooperative Bank not to panic The honorable finance minister Smt. @nsitharaman is evaluated on the subject and personally supervises the problem. She has assured that the government will protect the interests of depositors. Grateful for his concern, he tweeted last night.

The parliamentarian's office said in a statement that the finance minister even spoke with the governor and RBI officials about the matter and assured Surya that the government would do everything possible to protect depositors' interests and long-term interests. from the bank. .

The RBI had ordered that since the closing of the business on January 10 a depositor can withdraw a sum not exceeding Rs 35,000 of the total balance in each savings account or checking account or any other deposit account by any name that is called. .

According to sources, the RBI restriction was due to the bank having seen a default of Rs 350 million in loans in the last three months.