Trouble continues for Brahmawart Commercial Co-op Bank

The Reserve Bank of India has extended Directions issued to the Brahmawart Commercial Co-operative Bank Ltd., Kanpur for a further period of three months to April 06, 2016, subject to review. The bank has been under directions since July 07, 2015.

According to the Directions, Brahmawart Commercial Co-operative Bank Ltd., Kanpur cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur any liability, etc

Further, the bank can allow its depositors to withdraw a sum not exceeding Rs Forty thousand of the total balance in every savings bank or current account or any other deposit account on one occasion during the entire period of Directions, that is, from July 07, 2015 to April 06, 2016. The other terms and conditions of the directive shall remain unchanged. A copy of the directive dated December 30, 2015 is displayed at the bank’s premises for the perusal of public.

The modification of the directive by the Reserve Bank should per se not be construed as improvement or deterioration in the financial position of the bank. The Reserve Bank may consider modifications of the directive depending upon circumstances.

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