RBI again restrains GICB from doing banking transaction

PALANPUR/GUJARAT: Reserve Bank of India has once again restrained Gujarat Industrial Co-operative Bank (GICB) from doing any banking transaction, much to the disappointment of its 15,000 odd depositors who queued outside the bank premises on Saturday.

"We hope the crisis will come to an end soon, that too within a few months as ours is financially viable institution, there is no liquidity crunch at the bank. We have sufficient fund to satisfy demand of our customers," said officiating GICB General Manager N A Vyas.

GICB customers who queued outside the bank in hoping revival of baking activity here were a disappointed lot as RBI has extended the limit by six months that restrains the financial institution from doing any business transaction, a bank customer said.

The extended time period comes into effect from September 20, 2009 and last upto March 19, 2010, he added.

Last year, Reserve Bank of India had imposed restrictions on the functioning of GICB till September 19, another bank customer said.

We had expected that GICB shall come up with a concrete revival plan by the end of deadline, and banking operations shall commence from September 19, but no more, he added.

GICB has 20 branches spread across Gujarat, including one in Palanpur.