After the Reserve Bank of India (RBI) had placed restrictions on Sri Guru Raghavendra Sahakara Bank in Bengaluru, BJP MP Tejasvi Surya asked customers not to panic.

The banking regulator has placed a withdrawal limit of Rs 35,000 on the lender's customers.



I want to assure all depositors of Sri Guru Raghavendra Co-operative Bank to not panic.

Hon’ble Finance Minister Smt. @nsitharaman is appraised of matter & is personally monitoring the issue. She has assured Govt will protect interests of depositors. Grateful for her concern. pic.twitter.com/pmoAcUFAu7 Close January 13, 2020

Surya, an MP from Bengaluru South, said he had spoken to Finance Minister Nirmala Sitharaman about the situation.

Sri Guru Raghavendra Sahakara Bank Chairman K Ramakrishna said that 62 dud loans had forced the lock-up of Rs 300 crore.

"Your money is 100 percent safe with Sri Guru Raghavendra Sahakara Bank. It's my responsibility," Ramakrishna said.

Ramakrishna will meet customers on January 19.

The restrictions on Sri Guru Raghavendra Sahakara Bank have been placed for six months starting from the close of business on January 10.

In a notification on January 10, The RBI clarified that the bank's license had not been revoked.

Sri Guru Raghavendra Sahakara Bank cannot grant new loans or make new investments without a prior approval from the RBI.