Reserve Bank of India has placed Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur under Directions from the close of business on May 13, 2022.
The UCB shall not, without prior approval of RBI, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, etc.
A copy of the Direction is displayed on the bank’s premises and website for perusal by interested members of the public. Considering the bank’s present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn.
However, 99.84 per cent of the depositors are fully covered by the DICGC insurance scheme. 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 as stated in the Directions 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 on May 13, 2022 and are subject to review.
