Reserve Bank of India recently placed five urban cooperative banks under Directions and extended the validity of Direction on a UCB. The banks on which the new directions have been placed include, National Mercantile Co-operative Bank Ltd., Lucknow, The Hiriyur Urban Co-operative Bank, Imperial Urban Co-operative Bank, Defence Accounts Co-operative Bank and Pune Sahakari Bank Ltd.
RBI has issued certain Directions to National Mercantile Co-operative Bank Ltd, Lucknow, whereby, as from the close of business on March 10, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits etc.
Similarly, the certain Directions has been issued to the Hiriyur Urban Co-operative Bank Ltd., Hiriyur, Chitradurga District, whereby, as from the close of business on March 10, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits etc.
Besides, Imperial Urban Cooperative Bank Ltd., Jalandhar, whereby, as from the close of business on March 10, 2023, the bank shall not, without prior approval of RBI 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 etc.
RBI has issued directions to Defence Accounts Co-operative Bank Ltd., Pune, whereby, as from the close of business on March 10, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits etc.
The apex bank has issued certain Directions to Pune Sahakari Bank Ltd., Shivajinagar, Pune, whereby, as from the close of business on March 10, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits etc.
These Directions shall remain in force for a period of six months from the close of business on March 10, 2023 and are subject to review.
Extending the directions on Sikar Urban Co-operative Bank Ltd., Sikar, Rajasthan, the RBI press release reads, “The Reserve Bank of India issued Directions to the on the said bank, as modified from time to time, which were last extended up to March 09, 2023, shall continue to apply to the bank for a further period of three months till 09 June 2023. subject to review.
The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.