Don't panic, govt committed to protect interests of Bengaluru Co-op bank depositors: Tejasvi Surya

After the Reserve Bank of India (RBI) capped to Rs 35,000 the withdrawal limit of Sri Guru Raghavendra Co-operative Bank, BJP MP Tejasvi Surya on Tuesday said that the Central government is committed to protecting the interests of the bank's depositors and urged them to not panic.

Surya, a lawmaker from Bengaluru South, also revealed that his family has an account with the Bengaluru co-operative bank and said that current situation is not like the PMC bank issue.

"I have met with many depositors of this bank. To be honest, my family also has an account here. I met the Finance Minister (Nirmala Sitharaman) yesterday and today a meeting is underway at RBI with depositors and bank authorities," he told reporters here.

"I can assure all of you that the government is committed to protect the interest of the depositors. This issue is nothing like the PMC bank issue, so do not panic," the BJP leader said.

On January 10, RBI had imposed certain restrictions on Sri Gururaghavendra Sahakara Bank Niyamitha.

"In particular, a sum not exceeding Rs 35,000 of the total balance in every savings bank or current account or any other deposit account may be allowed to be withdrawn subject to conditions stated in the above RBI directions," the notification said.

The regulatory body said that the bank will continue to undertake banking business with restrictions until its financial position improves.

"These directions shall remain in force for a period of six months from the close of business of January 10 and are subject to review," it said.

The bank has been restricted from granting or renewing 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.