Days after the Reserve Bank of India (RBI) stopped Bengaluru-based Sri Guru Raghavendra Sahakara Bank from doing business with immediate effect after alleged irregularities in transactions and capped its withdrawal limit to Rs 35,000, BJP MP Tejasvi Surya has requested the depositors of the co-operative bank not to panic and said the Union finance minister is personally monitoring the issue.
“I want to assure all depositors of Sri Guru Raghavendra Co-operative Bank to not panic. Hon’ble Finance Minister Smt. Nirmala Sitharaman is appraised of matter and is personally monitoring the issue. She has assured Govt will protect interests of depositors. Grateful for her concern,” Surya tweeted.
In his tweet, Surya also attached the letter in which he had apprised the Finance Minister of the situation.
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. pic.twitter.com/pmoAcUFAu7
— Tejasvi Surya (@Tejasvi_Surya) January 13, 2020
The co-operative banking sector has come under a cloud again after the decision. On Monday, worried customers rushed to the bank’s branches to withdraw their funds. However, customers were able to withdraw only Rs 35,000 irrespective of their deposits. The RBI curbs on the bank unnerved depositors as the co-operative banking sector is yet to recover from the collapse of Punjab and Maharashtra Co-operative Bank in Mumbai recently.
“The bank shall not, without prior approval of the RBI in writing, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise,” the RBI said in a directive to the bank.
The RBI said the co-operative bank should not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets. These curbs will remain in force for a period of six months from January 10, 2020.