Reserve Bank of India has directed that Sri Bharathi Co-operative Urban Bank Ltd., Hyderabad, from the close of business on January 02, 2019 to be put under Directions.
The UCB shall not, without prior approval in writing from Reserve Bank of India, grant or renew any loans and advances, make any payment, incur any liability including borrowal of funds and acceptance of fresh deposits, etc.
“The UCB may renew the existing term deposits on maturity in the same name and same capacity; may incur such expenditure as permitted in the captioned Directions; may make investments in Government/SLR approved securities”, a press release reads.
It shall not incur or extinguish any other liability unless specifically approved in writing by the Reserve Bank of India, it adds.
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 directions 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 till its financial position improves. These directions shall remain in force for a period of six months from the close of business on January 02, 2019 and are subject to review.