The Reserve Bank of India has placed the Shivajirao Bhosale Sahakari Bank based in Pune under All-inclusive Directions. Depositors will be allowed to withdraw a sum not exceeding Rs 1000/.
The UCB, without prior approval in writing from the Reserve Bank, will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, etc.
The RBI directions is dated May 03, 2019 and have been issued from the close of business on May 04, 2019.
The issue of the directions by the Reserve bank should not, per se, be construed as cancellation of banking licence by the Reserve Bank.
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.