The Reserve Bank of India has extended Directions issued to Kanpur based United Commercial Co-operative for a further period of three months from December 1, 2014 to February 28, 2015, subject to review. The bank is under directions since June 1, 2013.
According to the Directions, United Commercial Co-operative Bank Ltd., Kanpur cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur any liability, disburse any payment and such other things that go with RBI’s Directions.
Further, the bank can allow its depositors to withdraw a sum not exceeding Rupees one thousand of the total balance in every savings bank or current account or any other deposit account on one occasion during the period of Directions, that is, from June 1, 2013 to February 28, 2015. The Directions were earlier extended on two occasions, each for a period of six months.
The press release from the regulatory body says that the issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves.
