RBI restricts withdrawals from Independence Co-operative Bank, Nashik

The RBI has put restrictions on withdrawals from Independence Co-operative Bank Limited, Nashik because of the lender’s present liquidity position. However, 99.89 per cent of the depositors are fully covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme, the Reserve Bank said in a statement on Wednesday. As per the insurance scheme, every depositor in a bank is entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from the DICGC. The restrictions will remain in force for a period of six months. “Considering the bank’s present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to…conditions…,” the central bank said.