The Osmanabad based UCB Shri Swami Samarth Urban Cooperative Bank has been in trouble since 2013 when the RBI put it under directions. As per the directions, the bank cannot transact any banking business whatsoever without prior permission from the apex bank. The latter’s directions would remain in force until May this year.
The cooperative bank can allow its depositors to withdraw a sum not exceeding Rs.1,000/- (Rupees one thousand only) of the total balance in every savings bank or current account or any other deposit account on one occasion during the period of Directions.
Sources say if the cooperative bank hobbled by mismanagement improves its financial situation , the RBI may consider offering it some relief. The present restrictions should not be interpreted as cancellation of banking license, add sources.
