It has been tense since Saturday after RBI issued a notice
Officials of the beleaguered Amanath Cooperative Bank said here on Monday that they expect the situation could ease in two days.
Facing a run on the bank following a Reserve Bank of India (RBI) directive that limits withdrawals to Rs. 1,000 per day per customer and a ban on accepting deposits, bank officials met the Registrar of Cooperative Societies and RBI authorities for redress.
“We had a meeting with RBI officials but I cannot disclose the details. The situation should be resolved in two days,” the bank’s chief executive officer, Naseer Ahmed, told The Hindu.
Conceding that customers were anxious about their deposits, Mr. Ahmed said that the bank had formed a committee to help customers who needed to withdraw large sums of money for genuine reasons.
Many customers have said that they need money for marriage ceremonies, admission in schools and colleges and hospitalisation among others.
Such customers should file an application citing the reason for withdrawal.
This will be considered by the committee which would allow them to withdraw the amount after taking RBI’s consent.
This was a temporary arrangement which would be in place until the main problem was resolved, Mr. Ahmed said.
Sources in the bank said that a team from the RBI was expected to scrutinise the bank’s transactions.
Meanwhile, hundreds of worried customers continued to throng the bank’s head office at Shivajinagar demanding that they be allowed to withdraw as much as they wanted.
The situation has been tense since Saturday when the RBI issued a notice to the bank imposing restrictions on its transactions.
The RBI order came after the bank reportedly failed to recover dues worth an unspecified amount within the stipulated time.