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‘Don’t panic’, Tejasvi Surya tells depositors after RBI restricts Bengaluru co-op bank operations

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Bengaluru Co-operative Bank News:  Bharatiya Janata Party MP Tejasvi Surya stepped in as panic gripped depositors of Sri Guru Raghavendra Sahakara Bank in Bengaluru after the Reserve Bank of India imposed curbs on its operations, restricting withdrawals to Rs 35,000. Offering assurance to the depositors, Tejasvi advised them not to panic and said that Union Finance minister Nirmala Sitharaman is apprised of the matter and is personally monitoring 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 government will protect the interests of depositors. Grateful for her concern,” Tejasvi tweeted Monday evening.

The Bangalore South MP also shared a letter to the FM apprising her of the situation. Speaking to reporters today, Tejasvi said that he met several customers of the bank. “I met FM yesterday and today meeting is underway at RBI with depositors and bank authorities,” he said, adding that his family also has an account in the cooperative bank.

Long queues were seen at the Bengaluru-based bank on Monday as news of RBI placing curbs on its operations spread. Customers were left in a panic as they could not withdraw anything above the stipulated amount of Rs 35,000. As per the RBI’s directives, “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 further barred the bank from entering into “any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets”. As per the RBI, the curbs will remain in place for a period of six months starting January 10, 2020.

However, the RBI clarified on Tuesday that the bank’s license has not been cancelled and that it can continue to undertake banking business within the restrictions till its financial position improves.

Source: Financial Express


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