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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Speaker rules out discussion on Guv''s conduct amid K''taka Assembly standoff
Bengaluru (PTI): In an effort to end the logjam over the Governor's address that has stalled proceedings for the past week, Karnataka Assembly Speaker U T Khader on Wednesday ruled that legislators should not discuss Thaawarchand Gehlot or his conduct in the house, saying such debates send the wrong message to the public.
The House has witnessed repeated disruptions and adjournments since the session began on January 22 over the issue of the governor's conduct.
During his address to the joint sitting of the Karnataka legislature on January 22, Gehlot read out only three sentences from the 122-paragraph speech prepared by the state government.
The speech included criticism of the Centre for replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat–Guarantee for Rozgar and Ajivika Mission (Gramin) (VB-G RAM G), portions of which the governor declined to read.
Concluding his address in about two minutes, the governor left the house, triggering a commotion as Congress legislators attempted to gherao him and raised slogans.
While the opposition BJP accused the ruling Congress and its ministers of "insulting" the governor and demanded action, the treasury benches countered by claiming the governor had "insulted the National Anthem by leaving before it was played."
The house again witnessed heated arguments on the issue earlier in the day, leading to adjournment.
During the interruption, Khader held a meeting with ministers and opposition members to resolve the impasse.
When proceedings resumed, the speaker delivered his ruling.
Referring to the events of January 22 and the subsequent debate, Khader said the conduct and discussions had conveyed the wrong message to the public.
"Our conduct as members of this House and the opinions expressed must be in good taste and in accordance with constitutional provisions. They must uphold the dignity of the House and its members. We must introspect in this direction," he said.
He stressed the need for caution to ensure that such incidents are not repeated in the future.
"Let us end this matter here, continue the discussion on the motion of thanks to the governor, and refrain from discussing the governor or his conduct in this house," the speaker said.
Leader of the Opposition R Ashoka said the house should express regret over what he termed an "insult" to the governor.
Responding, Chief Minister Siddaramaiah said the situation would not have arisen had the governor read out the entire address.
"Asking the house to express regret is not appropriate. Why did the governor leave even before the National Anthem was played," Siddaramaiah asked.
BJP MLA S Suresh Kumar reminded Siddaramaiah that as Leader of the Opposition in 2011, he had asked then Governor Hansraj Bhardwaj to curtail his address.
Bhardwaj had subsequently placed the address on the table of the house, requesting members to treat it as read.
Siddaramaiah said the situation in January 2011 was different from the present one.
The debate grew intense, leading to another adjournment of the house.
