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RBI restricts Bengaluru bank's operations, depositors worried

Several depositors queued up outside Sri Guru Raghavendra Co-operative Bank in Karnataka's Bengaluru on January 14. The Reserve Bank of India (RBI) has restricted the bank from doing business with immediate effect and capped withdrawal limit at Rs 35,000. Large numbers of depositors have queued up outside bank to withdraw money. While speaking to ANI, one of the depositors said, "My husband has a fixed deposit here-around Rs 15-20 Lakh. He is retired. We're dependent on it." "When we got the message we were disturbed. But when we came here, the advisor in the bank told us that deposit is safe. But we need to wait for six months. We're not happy," she added. RBI has said that the licence of the bank has not been cancelled, it can continue to 'undertake banking business with restrictions till its financial position improves'.