The Reserve Bank of India has issued certain directions to the U. P. Civil Secretariat Primary Co-operative Bank Ltd., Lucknow. The UCB has been, from the close of business on September 25, 2018, stopped from many activities.
These include the UCB shall not, without prior approval in writing from the Reserve Bank of India, grant or renew any loans and advances, make any investment, incur liability including borrowal of funds and acceptance of fresh deposits, etc.
However, it may renew the existing term deposits on maturity in the same name and same capacity and may incur expenditure as permitted in the captioned Direction. It shall also not incur or extinguish any other liability unless specifically approved in writing by the Reserve Bank of India.
The detailed directions are displayed on the bank’s premises for the interested members of public to peruse. The Reserve Bank may consider modifications of the directions depending upon circumstances. The issue of direction by the RBI should not per se be construed as cancellation of banking licence by RBI. The bank will continue to undertake banking business with restrictions.
The instructions will remain in force for a period of six months from the close of business on September 25, 2018 and are subject to review from time to time.
