RBI issues directions to Shri Sai Urban Cooperative Bank

Posted By: Religare
Subscribe to GoodReturns
The Reserve Bank of India on Friday said it has issued directions to Shri Sai Urban Cooperative Bank Ltd., Mukhed, District Nanded, Maharashtra for a period of six months with effect from close of business as on July 01, 2015.

According to the directions, Shri Sai Urban Cooperative Bank Ltd., Mukhed cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose any of its properties or assets except as notified in the Reserve Bank's Directions.

Further, the bank can allow its depositors to withdraw a sum not exceeding Rs 1,000 (Rupees one thousand only) of the total balance in every savings bank or current account or any other deposit account on one occasion during the period of Directions issued from July 02, 2015 for a period of six months.

The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license 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.

Story first published: Monday, July 6, 2015, 12:40 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Find IFSC