The bank is under directions since November 14, 2013. All the conditions applicable on banks, which are under Regulatory Body’s Directions, would be operative on this Maharashtra based bank.
These include the UCB cannot grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, etc.
Further, the bank can allow its depositors to withdraw a sum not exceeding Rupees one thousand of the total balance in every savings bank or current account or any other deposit account on one occasion during the period of Directions, that is, from November 14, 2013 to February 13, 2015. The Directions were earlier extended on one occasion for a period of six months.
The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license 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.