Your money, but you can withdraw only ₹ 10,000! Due to a decision of RBI, a mountain of sorrow fell on the customers of this bank.

Imagine, you go to the bank to withdraw your hard-earned money, and the bank employee says, “Sorry sir, you can withdraw only Rs 10,000, the rest of the money has been frozen!” The ground will slip beneath your feet, right?

Located in Solan, Himachal Pradesh ‘The Kandaghat Urban Cooperative Bank’ For the customers, this has not become a nightmare but a bitter reality. The Reserve Bank of India (RBI) has imposed strict restrictions on this bank, due to which the lifetime earnings of thousands of account holders are stuck.

Why did RBI impose this ‘lock’?
RBI takes this drastic step when it feels that the financial condition of the bank is not good, there is some misappropriation of money, or there is a danger of the bank going bankrupt. This step is taken to save the bank from complete collapse and to protect the remaining money of the depositors.

What will be its impact on customers?

The direct and biggest impact of these restrictions has been on common customers:

• Withdrawal of only ₹10,000: Under these restrictions, any account holder of the bank – even if he has lakhs of rupees in his account – cannot currently only ₹10,000 Can only take it out.
• No new loan, no new investment: The bank will now not be able to issue any new loan, nor will it be able to make any new investment, without the permission of RBI.

To put it plainly, almost all the functioning of the bank has been stopped till further orders.

So did you lose money? (This is most important to know)
The biggest fear in everyone’s mind after hearing such news is whether their hard-earned money will be lost?

So don’t panic. According to RBI rules, every customer in every bank Deposits up to Rs 5 lakh are fully insured it occurs. This means that even if the bank collapses tomorrow, you will still ‘Deposit Insurance and Credit Guarantee Corporation’ (DICGC) An amount up to Rs 5 lakh will be refunded.

For the time being, the bank will remain under the strict supervision of RBI and what will happen next will be decided only after reviewing the situation of the bank. But this incident once again forces us to think how careful we should be while choosing a bank to keep our money.