Deccan Urban Co-op Bank: 99.58% customers covered under deposit insurance, says RBI. What it means
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Since the IL&FS defaults, it can be noted that NBFCs and housing finance companies (HFCs) were facing a crisis of confidence, sending call money rates higher and overall liquidity tight.
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The central government earlier raised the deposit insurance cover to ₹5 lakh
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The Reserve Bank of India (RBI) on Friday imposed a ₹1,000 withdrawal cap on the customers of Karnataka-based Deccan Urban Co-operative Bank Ltd. Considering the bank s present liquidity position, a sum not exceeding ₹1000 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, RBI said in a release on Friday.
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Karnataka-based Deccan Urban Co-operative Bank has been put under restriction by the banking regulator, Reserve Bank of India. It has imposed a Rs 1,000 withdrawal limit on the customers due to poor financial health of the bank.
The regulator stated the bank cannot write grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.
It has also asked the lender to desist from disbursing any payment whether in discharge of its liabilities or otherwise, or dispose of any of its assets except as notified in the RBI direction.
India Business News: The Reserve Bank on Friday said it has barred Karnataka-based Deccan Urban Co-operative Bank Ltd from granting fresh loans or accepting deposits and c