Reserve Bank of India has issued certain Directions to Mantha Urban Cooperative Bank based in Jalna, Maharashtra applicable from the close of business on November 17, 2020.
The UCB has been asked not to renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, etc.
A copy of Directions is being displayed on the bank’s premises for perusal by interested members of the public. In particular, no deposit of the total balance across all savings bank or current account or any other account of a depositor may be allowed to be withdrawn subject to conditions stated in the above RBI Directions.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. 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.
These Directions shall remain in force for a period of six months from the close of business of November 17, 2020 and are subject to review.