Mumbai: The Reserve Bank of India said it has barred Karnataka-based Deccan Urban Co-operative Bank Ltd from granting fresh loans or accepting deposits, and customers cannot withdraw more than Rs 1,000 from their savings account for a period of six months.
The lender has also been asked not to make fresh investments or incur any liability without its prior permission.
The apex bank has also asked the lender to desist from disbursing any payment whether in discharge of its liabilities or otherwise or disposing of any of its assets except as notified in the RBI direction.
In a statement, the RBI said, “Considering the bank’s present liquidity position, a sum not exceeding Rs 1,000 only of the total balance across all savings bank or current accounts or any other account of a depositor may be allowed to be withdrawn.”
Reserve Bank said customers can set off their loans against deposits subject to conditions.
“However, 99.58 per cent of the depositors are fully covered by the DICGC insurance scheme.”