Effective close of business on September 12, 2014, the Reserve Bank of India has issued certain Directions to Shree Chhatrapati Urban Co.op Bank based in Pune.
Under the directions, depositors will be allowed to withdraw only Rupees one thousand only of the total balance in every savings bank or current account or any other deposit account.
The bank has also been restrained from granting or renewing any loans and advances, making any investment, incurring any liability including borrowal of funds and acceptance of fresh deposits, disbursing or agreeing to disburse any payment whether in discharge of its liabilities and obligations or otherwise.
Also, the UCB cannot enter into any compromise or arrangement and selling, transferring or otherwise disposing of any of its properties or assets except as notified in the RBI Directions dated September 10, 2014 a copy of which is displayed on the bank’s premises for perusal by interested members of the public. It can do so only with prior approval in writing from the Reserve Bank of India.
The Reserve Bank has also clarified that its directions should not per se be construed as cancellation of its banking licence as 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.
