In a press release the apex regulator RBI says “It is hereby notified for information of the public that in exercise of powers vested in it Jamkhed Merchants Co-operative Bank based in Ahmednagar in Maharashtra has been put under certain Directions.
The Directions are operative from the close of business on April 12, 2016, the aforesaid bank shall not, without prior approval in writing from Reserve Bank of India do many things.
Restrictions on the UCB include grant or renew any loans and advances, making any investment or incur any liability including borrowal of funds and acceptance of fresh deposits etc.
A copy of the Directions is to be displayed on the bank’s premises for perusal by interested members of the public.
In particular, a sum not exceeding Rupees one thousand of the total balance held in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by a depositor subject to the conditions stipulated in the above RBI Directions.
The issue of the above 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. The Reserve Bank may consider modifications of these Directions depending upon circumstances.
