There is a ban on withdrawing money from Independent Co-operative Bank Ltd, Nashik, Maharashtra. The Reserve Bank of India (RBI) stayed for a period of six months. RBI said that 99.88 percent of the bank’s depositors are fully covered by the ‘Deposit Insurance and Credit Guarantee Corporation’ (DICGC) insurance scheme. Under the insurance scheme, every customer depositing in the bank can get the insurance claim amount deposited from the DICC on his deposit up to Rs 5 lakh.
RBI said, “In the current situation of the bank, the depositors will not be able to withdraw any amount from the savings or current account or any other account. Customers can settle the loan against the deposit, which is subject to certain conditions. Raising the restrictions, RBI said that the bank’s chief executive will not lend or renew any loan without the prior approval of RBI. Apart from this, they will not be allowed any investment or payment.
The bank will continue to conduct its banking business with restrictions. The central bank said that it could change the instructions depending on the situation. This restriction will remain until the financial situation improves.
