The Reserve Bank of India has issued certain directions to HCBL Co-operative Bank which is based in Lucknow. The instructions will remain in force for a period of six months, subject to review from time to time, reads a release from the regulator.
The UCB cannot without prior approval 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 and several other restrictions.
The detailed directions are displayed on the bank’s premises for the interested members of public to peruse. The Reserve Bank may consider modifications of the directions depending upon circumstances.
The issue of direction by the RBI should not per se be construed as cancellation of the banking licence of the bank, RBI release reads.
