The Reserve Bank of India has placed the Shri Anand Co-operative Bank Ltd. Chinchawad, Pune under Directions. According to the Directions, depositors will be allowed to withdraw a sum not exceeding ?1000 (Rupees one thousand only) of the total balance.
Additionally, the UCB, without prior approval in writing from the Reserve Bank, will also not be able to 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 of any of its properties or assets except as notified in the RBI directions dated June 21, 2019. The Directions shall remain in force for a period of six months from the close of business of the bank on June 25, 2019.
The issue of the directions by the Reserve bank should not, per se, be construed as cancellation of banking licence 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.
