Panic stricken depositors mill around Bengaluru bank after RBI caps withdrawal limit
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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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
