'Don't Panic': Tejasvi Surya to Bengaluru Bank Depositors as RBI Puts Curbs on Withdrawal, Business

Bengaluru: Stepping up to ‘calm down’ the panicked depositors of Bengaluru-based cooperative bank, BJP MP Tejasvi Surya took to Twitter and assured them that the government will ‘protect the interests of the depositors’.

The panic among the depositors was triggered after the Reserve Bank of India put a limit on the withdrawal of Rs 35,000 while also restricting it from doing business. Surya said that he had informed Finance Minister Nirmala Sitharaman about the matter and that she was 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 Govt will protect interests of depositors. Grateful for her concern," Surya tweeted.

On January 11, the RBI curbed the private bank from doing business with immediate effect for alleged irregularities in transactions, an official said on Saturday.

"Sri Guru Raghavendra Sahakara Bank in Bengaluru shall not, without prior approval of the RBI in writing, grant or renew loans and advances, make investment, borrow funds or accept fresh deposits from January 10, 2020," the RBI said in a directive, which has been accessed by IANS.

The central bank's Chief General Manager Yogesh Dayal issued the directive under Sections 35A and 56 of the Banking Regulation Act, 1949, from Mumbai.

The RBI, however, allowed the bank's savings and current account customers and depositors to withdraw cash up to Rs 35,000 only till further notice.

"The private bank will also not disburse payment whether in discharge of its liabilities and obligations or otherwise, enter into compromise or arrangement and sell, transfer or otherwise dispose its properties or assets except, as instructed on January 2, 2020," said the directive.

"The bank will, however, continue to undertake business with restrictions till its financial position improves," said an official, citing the directive.

The regulator clarified that its directive should not be construed as cancellation of the bank's license issued by it.

"The directive shall remain in force for six months from January 10 and is subject to review," added the official.