New Student Offer - Use Code HELLO

Register Now

RBI caps Withdrawal Limit from Deccan Urban Co-operative Bank

Published on February 23, 2021
Current Context: The Reserve Bank of India (RBI) has put a withdrawal cap of Rs 1000 from Deccan Urban Co-operative Bank.
RBI caps Withdrawal Limit from Deccan Urban Co-operative Bank
  • The RBI has barred Deccan Urban Co-operative Bank from granting new loans and accepting deposits because of its poor liquidity position.
  • These impositions will remain for six months, as per RBI.
  • These directions are imposed by RBI as per powers under section (1) of section 35A of Banking Regulation Act 1949 read with section 56 of Banking Regulation Act 1949.
  • As per a statement from RBI, ‘Considering the bank's present liquidity position, a sum not exceeding Rs 1,000 only of the total balance across all savings bank or current accounts or any other account of a depositor may be allowed to be withdrawn.
  • However, the account holders can set off their loans against deposits subject to conditions.
  • As per RBI, 99.58% of customers of Deccan Urban Co-operative Bank are fully covered by the DICGC’s Insurance Scheme. It will offer up to Rs 5 lakhs on bank deposits.
  • Static Part: 
    • HQ of Deccan Urban Co-operative Bank: Vijayapura, Karnataka


Q.1 RBI has imposed a withdrawal cap of Rs ____ on Deccan Urban Co-operative Bank for the next 6 months?
a. Rs 3000
b. Rs 1000
c. Rs 5000
d. Rs 2000
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu