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At present, a very shocking and worrying news is coming out related to the Indian Banking Sector. The central bank of the country i.e. Reserve Bank of India (RBI) has launched its ‘Hunter’, taking strict action against a leading co-operative bank due to the continuous deterioration of its financial condition. After these strict restrictions imposed by the Central Bank, now the customers of that bank will not be able to withdraw more than a certain limit from their accounts. If you also have an account in this bank, then this news is very important for you. Let us know in detail which bank has been tightened by RBI, what rules are included in the scope of restrictions and what effect it will have on common account holders.
RBI tightened its grip on Puducherry Co-operative Urban Bank, restrictions imposed for six months
The Reserve Bank of India on Wednesday issued its strict guidelines. Puducherry Co-operative Urban Bank But many types of financial restrictions have been imposed. This step has been taken by RBI keeping in mind the deteriorating financial health and decreasing liquidity position of this bank.
According to these orders of the Central Bank, all these restrictions imposed on Puducherry Co-operative Urban Bank will be effective from today to next. six months Will remain in full effect for the period. Until the financial condition of the bank gets back on track, customers will have to carry out their banking operations under these strict rules. After this action, there has been a stir among the account holders associated with the bank.
Customers will be able to withdraw only Rs 5,000 from the account, ban on giving new loans also
According to the new instructions of RBI, in view of the poor cash position of Puducherry Co-operative Urban Bank, it has been decided that any customer of the bank can withdraw money from his savings account, current account or any other account. Will not be able to withdraw a total amount of more than Rs 5,000. That means even if you have lakhs of rupees deposited in your account, you will be able to withdraw only five thousand rupees at a time during this crisis.
Apart from this, the central bank has also imposed strict restrictions on this cooperative bank regarding several other business activities:
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Ban on loans and advances: The bank will no longer be able to issue any type of new loan or advance to any new customer.
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Investments and Liabilities: The bank is completely prohibited from making new investments, accepting any new liability and selling, transferring or disposing of any of its assets.
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However, under certain special and prescribed conditions, customers are allowed to set-off old loans against their deposits.
Has the bank’s license been cancelled? Know what RBI said
After coming across such restrictions, account holders often fear that their bank has gone bankrupt or its license has been cancelled. Clearing all these apprehensions, the Reserve Bank of India has clarified that issuing these instructions does not at all mean that the banking license of the bank has been cancelled.
According to RBI, this bank can continue its limited banking operations until its financial condition improves. However, during this period it will be mandatory for the bank to strictly follow all these instructions and restrictions issued by the Central Bank. RBI is continuously keeping a close watch on the functioning and financial activities of this bank.
What are the rules regarding security of customers’ money? DICGC Insurance Cover
Amidst this poor condition of the bank, the biggest question arising in the minds of the customers is whether their deposited money will be lost? In this regard, RBI has given relief and said that all the eligible depositors of this bank ‘Deposit Insurance and Credit Guarantee Corporation’ (DICGC) under the rules of Deposit Insurance Claim up to Rs 5 lakh are entitled to receive.
That is, under the rules of DICGC, deposits up to Rs 5 lakh of each account holder are considered completely safe. The central bank has also assured that it is continuously monitoring the situation and appropriate steps will be taken as required in future to protect the interests of account holders. If you also have an account in this bank, then instead of panic, you should focus on processing your insurance claim through DICGC as per the rules.