In a press release issued by the Reserve Bank of India the regulator said that it is satisfied that in the interest of the public it is necessary to issue certain directions to the Brahmawart Commercial Co-operative Bank Ltd., Kanpur.
RBI directed that the Brahmawart Commercial Co-operative Bank Ltd., Kanpur, from the close of business on July 7, 2015, shall not, without prior approval in writing from the Reserve Bank of India, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits.
The UCB has also been stopped from disbursing or agreeing to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except when it has sought prior approval.
The Bank has been, however allowed to invest in Government /SLR approved securities. For any other thing it has to seek specific approval in writing by the Reserve Bank of India.
The detailed directions are displayed on the bank’s premises for the interested members of public to peruse. The Reserve Bank may consider modifications of the directions depending upon circumstances.
The issue of direction by the RBI should not per se be construed as cancellation of banking licence by RBI. The bank will continue to undertake banking business with restrictions. The instructions will remain in force for a period of six months, subject to review from time to time.