The Reserve Bank of India has imposed restrictions on The National Cooperative Bank in Bangalore effective Monday evening.
The bank shall not grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits.
Depositors of the cooperative lender are allowed to withdraw up to Rs 50,000 for now, according to restrictions imposed by the regulator. They will be eligible for payouts from the Deposit Insurance Credit Guarantee Corporation worth up to Rs 5 lakh, within the prescribed timeline.
Once a bank is put under restrictions, depositors are eligible for receiving payment from DICGC within two months. Any deposit amount exceeding the insured amount of Rs 5 lakh will be settled as and when the bank comes out of the restrictions, or when it is liquidated.
According to information available on the cooperative lender's website, it had a deposit base of Rs 1,679 crore as of March 2021. Its loans and advances were Rs 1,128 crore. Recent information is not available.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.