In a press release apex bank RBI has said that “ It is hereby notified for information that it has issued certain Directions to the Suri Friends Union Co-operative Bank Ltd Birbhum, West Bengal.”
The UCB, from the close of business on April 7, 2014, shall not, without prior approval in writing from Reserve Bank of India, 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 March 28, 2014, a copy of which is displayed on the bank’s premises for perusal by interested members of the public.
In particular, a sum not exceeding Rupees one thousand only out of the total balance held in every savings bank / current account or any other deposit account by whatever name called may be allowed to be withdrawn subject to the conditions stipulated in the above RBI Directions.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.
Earlier, the CKP co-op bank was put under Directions in the first week of current month by the RBI. It has led to great inconvenience to a many of the ucb’s customers, as quite a few of them are senior citizens and have put their life’s savings into the bank.