RBI restricts withdrawals from THIS financial institution, 99.84% depositors DICGC protected

New Delhi: The RBI on Friday imposed a number of restrictions on Shankarrao Pujari Nutan Nagari Sahakari Financial institution Restricted, Ichalkaranji, Kolhapur, together with on withdrawals, in view of the lender’s worsening monetary place.
Nonetheless, 99.84 per cent of the depositors are totally lined by the DICGC insurance coverage scheme. Beneath the Deposit Insurance coverage and Credit score Assure Company (DICGC) insurance coverage scheme, deposits of as much as Rs 5 lakh are insured.
The RBI, in a press release, stated the restrictions will stay in drive for a interval of six months from the shut of enterprise on Could 13, 2022 and are topic to overview.
“Contemplating the financial institution’s current liquidity place, no quantity from the whole stability throughout all financial savings financial institution or present accounts or another account of a depositor, could also be allowed to be withdrawn, however are allowed to set off loans in opposition to deposits topic to the circumstances…,” it stated.
It additional stated the issuance of the instructions mustn’t per se be construed as cancellation of the banking licence by RBI.
“The financial institution will proceed to undertake banking enterprise with restrictions as acknowledged within the Instructions until its monetary place improves,” it stated.
The Reserve Financial institution added that it might take into account modifications of the instructions relying upon circumstances.
The financial institution can not, with out prior approval of RBI, grant or renew any loans and advances, make any funding, incur any legal responsibility, and eliminate any of its properties or property, amongst different restrictions.

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