In a press release the regulator RBI informs that it has issued certain Directions to The United Cooperative Bank Limited, Bagnan Station Road (North), P.O.-Bagnan, Dist-Howrah, Pin-711303, West Bengal.
The communication says that “from the close of business on July 18, 2018, the aforesaid bank shall not, without prior approval of RBI in writing undertake many activities including grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds, etc.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking licence by RBI, the release clarifies. 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 the circumstances. These directions shall remain in force for a period of six months from the close of business on July 18, 2018 and are subject to review from time to time.