The Reserve Bank of India has issued Directions to Shri Sai Urban Cooperative Bank, Mukhed based in Nanded( Maharashtra) for a period of six months.
According to the Directions the UCB cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur 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 any of its properties or assets except as notified in the Reserve Bank’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 issued from July 02, 2015 for a period of six months.
A copy of the Directions is displayed on the bank’s premises for perusal by interested members of public. 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. The Reserve Bank may consider modifications of these Directions depending upon circumstances.
