A woman walks past a billboard promoting the use of mobile banking services in Nanjing, capital of East China’s Jiangsu Province on Thursday. Photo: CFP

Bank of Nanjing, a commercial bank in China, issued a clarification statement on Sunday to refute the rumors that depositors have had difficulties withdrawing money from its outlets, making clear that the bank is in no way connected to the rural bank cases.

The online information that depositors can’t withdraw money from its branch in Hangzhou, East China’s Zhejiang Province is false. Bank of Nanjing and all its branches are operating normally under sound management, the bank said in the notice, adding that it will hold the personnel spreading the rumors accountable and will take action according to the law.

The clarification comes after some people were seen having gatherings in front of its outlets in Hangzhou on Friday, triggering worries that the bank was associated with the recent rural bank scandals.

The rural banking system in China has been under the spot light after depositors in four rural banks in Central China’s Henan and one in neighboring East China's Anhui Province, have been unable to access their funds since April 18 as a result of weak supervision

According to the Bank of Nanjing, the people who gathered in front of its branch are depositors with large amount of deposit from relevant rural banks.

The Bank of Nanjing said it only acts as the clearing agent for the relevant rural banks and handles the settlement business in strict accordance with the relevant provisions of the payment system. The relevant fund settlement services comply with the law. 

The Bank of Nanjing only acts as a capital clearing channel for rural banks and has nothing to do with therural bank cases, the notice said.

In a previous announcement, the Bank of Nanjing said that the settlement of rural banks by commercial banks is carried out in accordance with the guidelines of the People's Bank of China, which is a routine agency business.

As the agent liquidation bank, it is responsible for receiving and paying the funds according to the instructions, and only has a liquidation relationship with the agent bank and the People's Bank of China.

In a latest development, public security authorities in Central China's Henan Province have arrested 234 criminal suspects involved in the local rural bank case and achieved a "major progress" in the recovery of money and other losses.

According to the police announcement, the deep investigation into the case is going forward. It has been found that a criminal gang led by a suspect named Lü Yi, the actual controller of Henan New Wealth Group, illegally controlled four rural banks, including Yuzhou New Minsheng, in addition to being involved in a series of serious crimes.

In another major development regarding the case, starting at 9 am on August 30, individuals with deposits ranging from 400,000 yuan ($57892.16) to 500,000 yuan in the four rural banks in Henan and one in East China's Anhui Province will be repaid.

Those with savings above 500,000 yuan will be paid a maximum of 500,000 yuan. They will retain the rights to any amount over 500,000 yuan, and this will be addressed accordingly, based on the recovery of assets involved in the case.