Bengaluru, Jan 14: Panic stricken depositors milled around the Sri Guru Raghavendra Cooperative Bank here on Tuesday to withdraw their money, days after the Reserve Bank of India capped the withdrawal limit to Rs 35,000.
The depositors, mostly senior citizens, were concerned about their money deposited in the bank and worried as to how long it might take for the situation to get resolved.
Expressing disappointment about the bank's response to their concerns, many said they put their money in the bank as it provided an additional one per cent interest.
Some depositors even compared the situation with another PMC bank like crisis.
Bank officials maintained that depositors' money was 'hundred per cent' safe and are expected to hold a meeting with them on January 19.
One such meeting that was supposed to be held on Monday could not take place.
BankChairman KRamakrishna said the bank has stability and there was no reason for depositors to worry or panic.
Stating that RBI restrictions cited the rise in Non Performing Assets, he said "NPA during last March was 0.50 per cent, but as they have taken the numbers of the last eight years, there is some confusion.
The restrictions are not permanent. It is temporary in the interest of the depositors and the bank... Banks license has not been cancelled," he said.
Requesting depositors not to fear, he further said the management was committed to set things right and the bank has a good record of over 20 years on their side.
He said the bank has not given any benami loans and has Rs 2,200 crore security.
"We are in talks with RBI to bring in normalcy...please dont panic on hearing what others are saying,'' he added.
Meanwhile, Bangalore South MP Tejasvi Surya said Finance Minister Nirmala Sitharaman has been appraised of the matter and was personally monitoring the issue.
"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," he tweeted last night.
The MP's office in a statement has said that the Finance Minister has even spoken to the RBI Governor and officials on the matter and assured Surya that the government would do everything to protect the interests of the depositors and in the long-term interest of the bank.
The RBI had directed that from the close of business on January 10 "a sum not exceeding Rs 35,000 of the total balance in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by a depositor."
According to sources, RBI's restriction was because the bank had seen a default of Rs 350 crore on loans over the past three months.
I want to assure all depositors of Sri Guru Raghavendra Co-operative Bank to not panic.— Tejasvi Surya (@Tejasvi_Surya) January 13, 2020
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. pic.twitter.com/pmoAcUFAu7
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Washington: The California State Assembly in the US has recognised late Bollywood actor Sushant Singh Rajput for his efforts to promote India's rich culture and heritage and his immense contributions to Indian cinema.
Rajput, 34, was found hanging from the ceiling of his apartment in suburban Bandra in Mumbai on June 14. The Mumbai police has been probing the alleged suicide following an accidental death report complaint lodged by Bandra police.
The California State Assembly in a certificate of recognition noted Rajput's "immense contributions to Bollywood cinema" and appreciated his "philanthropic community work as well as his efforts to promote India's rich culture and heritage".
The actor's sister Shweta Singh Kirti who lives in the US received the certificate on Rajput's behalf. The actor had often expressed his desire to work in Hollywood. Indian community leader Ajay Bhutoria presented the recognition from the California State Assembly to Suhant's family.
The recognition of the Bollywood star was led by California Assemblyman Kansen Chu.
It's a great privilege for me to accept this honour from California State Assembly, on behalf of my brother, in remembrance and appreciation of his philanthropic work and contributions to Indian cinema," Shweta told PTI on Saturday.
"I thank the Assembly members and the Indian-American community for their continuous support in these hours of crisis," she said.
Her husband Vishal Kirti said the California State Assembly has recognised Rajput's contributions to Indian cinema and the community on the auspicious occasion of India's Independence Day.
Millions of Indian Americans are watching the proceedings of the ongoing campaign for getting #JusticeForSushantSinghRajput, Rajput's brother-in-law Vishal said. "Indian-Americans are looking up to the Indian government to get Sushant Singh Rajput death case an unbiased investigation," he said.
On July 25, Rajput's 74-year-old father K K Singh, who lives in Bihar, filed a complaint with police in Patna against his son's rumoured girlfriend and actress Rhea Chakraborty and her family members accusing them of cheating and abetting his son's suicide.
The CBI recently took over investigation into the case and re-registered the Patna police FIR. The Enforcement Directorate (ED) is also questioning Chakraborty, her family members and others in connection with a money laundering case linked to the death of the actor.