Reserve Bank of India (RBI) said on Tuesday that depositors wouldn’t be able to withdraw funds from their accounts in Karnataka-based Sri Mallikarjuna Pattana Sahakari Bank Niyamita and Maharashtra-based Nashik Zilla Girna Sahakari Bank.
The restrictions have been imposed on the two cooperative banks by the Reserve Bank of India at the backdrop of their deteriorating financial positions. The restrictions on Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski (Karnataka) and Nashik Zilla Girna Sahakari Bank, Nashik (Maharashtra) will remain in force for six months, as per two statements issued by the central bank.
In the case of Nashik Zilla Girna Sahakari Bank, the Reserve Bank said 99.87 per cent of the depositors are fully covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme. Also, 99.53 per cent of the depositors of Sri Mallikarjuna Pattana Sahakari Bank Niyamitaare are fully covered by the DICGC insurance scheme.
"Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits...," the Reserve Bank of India said it is statement, in regards to the Karnataka-based bank.
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