The Reserve Bank of India has put Pune based Seva Vikas Co-op Bank goes under Direction from the close of business on October 12, 2021.
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, 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 of any of its properties or assets except as notified in the RBI Direction.
A copy of the Direction is displayed on the bank’s premises for perusal by interested members of the public. In particular, a sum not exceeding Rs 1000 (Rupees One Thousand only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions.
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 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 October 12, 2021 and are subject to review.
