The Reserve Bank of India has issued certain directions to the Khedbrahma Nagarik Sahakari Bank,Sabarkantha (Gujarat) not to grant any loan without its approval from the close of business on October 31, 2011.
Khedbrahma Nagarik Sahakari Bank shall not, without prior approval in writing from the 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.
Bank will also not 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 to the extent and in the manner as notified in the RBI Directions dated October 24, 2011.
A copy RBI direction is displayed on the bank’s premises for perusal by interested members of the public.
The issue of the above Directions by the RBI should not, however be construed as cancellation of banking licence by RBI. The bank will continue to undertake banking business with the restrictions till its financial position improves.