Bhilwara Mahila Urban Co-op Bank in trouble

The Reserve Bank of India (RBI) has issued certain Directions to The Bhilwara Mahila Urban Co-operative Bank Ltd, Bhilwara whereby as from the close of business on March 09, 2017, the aforesaid bank shall not, without prior approval in writing from RBI, grant or renew any loans and advances, make any investment.

The UCB has also been stopped from incurring any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree 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 as notified in the RBI Directions dated March 07, 2017.

A copy of these Directions is being displayed on bank’s premises for perusal by interested members of the public. In particular, a sum not exceeding Rs one thousand of the total balance in every savings bank or current account or any other deposit account may be allowed to be withdrawn subject to conditions stated in the above RBI Directions.

“The issue of the above Directions should not per se be construed as cancellation of banking licence by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these directions depending upon circumstances”, the release clarifies.

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