The Reserve Bank of India has put Gomti Nagariya Sahkari Bank Ltd based in Jaunpur (Uttar Pradesh) under certain direction from the close of business on July 10, 2017.
The UCB shall not, without prior approval in writing from the Reserve Bank of India, grant or renew any loans and advances, make any investment, etc.
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 banking licence by RBI. The bank will continue to undertake banking business with restrictions. The instructions will remain in force for a period of six months from the close of business on July 10, 2017 and are subject to review from time to time.