Reserve Bank of India has issued certain Directions to Millath Co-operative Bank Ltd, Davangere District, Karnataka whereby, as from the close of business on May 08, 2019, the UCB shall not, without prior approval grant or renew any loans and advances, make any investment, incur any liability, etc.
A copy of RBI Directions dated April 26, 2019, is displayed on the bank’s premises for perusal by interested members of the public, said the RBI release.
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.
