Panic stricken depositors mill around bank after RBI caps
withdrawal limit
(Eds: updating with Bank Chairman's quotes)
Bengaluru, Jan 14 (PTI): Panic stricken depositors milled
around the Sri Guru Raghavendra Cooperative Bank here on
Tuesday to withdraw their money, days after the Reserve Bank
of India capped the withdrawal limit to Rs 35,000.
The depositors, mostly senior citizens, were concerned
about their money deposited in the bank and worried as to how
long it might take for the situation to get resolved.
Expressing disappointment about the bank's response to
their concerns, many said they put their money in the bank as
it provided an additional one per cent interest.
Some depositors even compared the situation with another
PMC bank like crisis.
Bank officials maintained that depositors' money was
'hundred per cent' safe and are expected to hold a meeting
with them on January 19.
One such meeting that was supposed to be held on Monday
could not take place.
BankChairman KRamakrishna said the bank has stability
and there was no reason for depositors to worry or panic.
Stating that RBI restrictions cited the rise in Non
Performing Assets, he said "NPA during last March was 0.50 per
cent, but as they have taken the numbers of the last eight
years, there is some confusion.
The restrictions are not permanent. It is temporary in
the interest of the depositors and the bank... Banks license
has not been cancelled," he said.
Requesting depositors not to fear, he further said the
management was committed to set things right and the bank hasa
good record of over 20 years on their side.
He said the bank has not given any benami loans and has
Rs 2,200 crore security.
"We are in talks with RBI to bring in normalcy...please
dont panic on hearing what others are saying, he added.
Meanwhile, Bangalore South MP Tejasvi Surya said Finance
Minister Nirmala Sitharaman has been apprised of the matter
and was 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. @nsitharaman is
appraised of matter & is personally monitoring the issue.
She has assured Govt will protect interests of
depositors. Grateful for her concern," he tweeted last night.
The MP's office in a statement has said that the Finance
Minister has even spoken to the RBI Governor and officials on
the matter and assured Surya that the government would do
everything to protect the interests of the depositors and in
the long-term interest of the bank.
The RBI had directed that from the close of business on
January 10 "a sum not exceeding Rs 35,000 of the total balance
in every savings bank or current account or any other deposit
account by whatever name called, may be allowed to be
withdrawn by a depositor."
According to sources, RBI's restriction was because the
bank had seen a default of Rs 350 crore on loans over the past
three months. PTI KSU RS APR

(This story has not been edited by THE WEEK and is auto-generated from PTI)