Govt places GTB under moratorium

Withdrawals limited to Rs 10,000.

The central government today issued an order of moratorium in respect of Global Trust Bank (GTB) on an application by the Reserve Bank of India (RBI).

"The order of moratorium has been passed by the central government in public interest in the interest of depositors and the banking system," according to a release issued by the RBI today.

The moratorium will be effective from the close of business on July 24, 2004 up to and inclusive of October 23, 2004 or an earlier date if alternate arrangements are put in place.

"During this period, RBI will consider various options including amalgamation of GTB with any other bank, and finalise plans in public interest and with a view to ensuring that the public deposits are protected," the release added.

During the period of moratorium, the bank will be permitted to make only those payments that have been specified in the order of moratorium and the depositors of GTB will be permitted to withdraw up to Rs 10,000 from their savings bank account or current account or any other deposit account through any of the branches of the bank.

"For the present, withdrawals through ATMs of the bank/ATMs shared with other banks will not be permitted so as to give effect to the monetary ceiling prescribed in the moratorium, but the customers can make withdrawals up to the limit specified at any of the bank's branches," the release said.

Any requirement of cash at the branches of the bank for making permitted payments will be ensured in full by the RBI since cash balances are maintained with it by GTB, the release added.

 Click here for RBI release