RBI has put Kolkata based Kolikata Mahila Cooperative Bank under directions from the close of business on July 9, 2019. “It is directed that the aforesaid bank shall not, without prior approval of RBI grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds, etc”.
“The issue of the above Directions 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 till its financial position improves”, RBI clarifies.
The Reserve Bank may consider modifications of these Directions depending upon the circumstances. These directions shall remain in force for a period of six months from the close of business on July 9, 2019 and are subject to review from time to time, it adds.