RBI Places Withdrawal Cap On Deccan Urban Co-Op Bank Customers

The RBI on February 19 placed a withdrawal cap limit of Rs1000 on the customers of Karnataka-based Deccan Urban Co-operative Bank. Valid for six months, the RBI barred the bank from issuing loans and accepting deposits due to its liquidity status. Specifying that restrictions not be misunderstood with the cancellation of banking license, the RBI assured insurance of 99.58% of depositors. Last year, RBI had penalised DUCB for breaching banking directions.