Karnataka Police raid Sri Guru Raghavendra Co-op Bank

Bengaluru, June 19 (IANS) Karnataka Police’s Anti-Corruption Bureau (ACB) department has raided the offices of Sri Guru Raghavendra Co-operative Bank on Friday, an official said.

“We have raided the offices of Sri Guru Raghavendra Co-operative Bank,” Additional Director General of Police T. Sunil Kumar told IANS.

According to the department, deposits amounting to Rs 1,400 crore have been misappropriated in the bank, by violating the Reserve Bank of India rules.

A few officials of the bank have created artificial deposits and lent up to Rs 150 crore to some fictitious customers.

In January, the RBI had curbed the city-based private bank from doing business with immediate effect for alleged irregularities in transactions.

Following the RBI curbs, panicked customers rushed to withdraw Rs 35,000 each from their accounts, a limit set by the central bank back in January.

The bank’s head office is in Basavanagudi, and branches at Kanakapura Road, Poorna Prajna Layout, Kengeri, Raja Rajeshwari Nagar, Vidyaranyapura, BTM Layout and Rajainagar in Bengaluru.

–IANS

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