The banks which have seen panic withdrawal of deposits on Wednesday include the Textile Traders Co-operative Bank, Ahmedabad District Co-operative Bank, Kalupur Commercial Bank, Nutan Nagrik Bank, Ahmedabad Mercantile Bank, Visnagar Bank, Charotar Nagrik Bank, Mahila Utkarsh Bank, Manekchok Bank and Pragati Bank.

However, the Reserve Bank of India (RBI) has stepped in and banned premature withdrawal of fixed deposits from co-operative banks. This restriction though will not apply for withdrawal from saving bank accounts. This was decided after the Ahmedabad-based association of co-operative banks sought the RBI's permission to do so, and the central bank gave the go-ahead on Wednesday.

In another major step, the RBI has also filed a criminal complaint against the chairman and managing director of Madhavpura Bank under Section 46 of Banking Regulation Act for making wrong disclosures regarding banking transactions.

Briefing media persons, chief general manager of RBI, VS Das said the RBI has also requested all the co-operative banks to stick to their routine banking hours and not to work overtime in repaying the deposits. The central bank also directed these banks not to sanction additional credit facilities so that they can maintain the liquidity level within manageable limits.

Regarding premature withdrawal of deposits, Mr Das said the RBI had held a meeting with the state government to review the situation.

Mr Das said the operations of the clearing house has been restored and a total of Rs 1,146 crore high-value cheques have been cleared. He also requested the depositors not to panic and rush to banks for premature withdrawal of deposits.