The Reserve Bank of India (RBI) put new directions on five urban cooperative banks and extended directions on two UCBs on Friday. These UCBs are Malkapur Urban Co-operative Bank, Shankarrao Mohite Patil Sahakari Bank, Shimsha Sahakara Bank Niyamitha, Maddur, Thodupuzha Urban Co-operative Bank Ltd, Adarsh Mahila Nagari Sahakari Bank Maryadit, Uravakonda Co-operative Town Bank and HCBL Co-operative Bank.
The Reserve Bank of India issued Directions to the Malkapur Urban Co-operative Bank Ltd., Buldhana, Maharashtra, as modified from time to time, which were last extended up to February 24, 2023, shall continue to apply to the bank for a further period of three months from February 25, 2023 to May 24, 2023, subject to review. All other terms and conditions of the Directives shall remain unchanged.
The apex bank has placed Shankarrao Mohite Patil Sahakari Bank Ltd., Akluj under direction, whereby, as from the close of business on February 24, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment etc.
Similarly, RBI issued certain Directions to Shimsha Sahakara Bank Niyamitha, Maddur, Mandya District, whereby, as from the close of business on February 24, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment etc.
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.
Besides, RBI issued to Thodupuzha Urban Co-operative Bank Limited, No.394, Kerala, the validity of which was for six months i.e., till February 23, 2023, shall continue to apply to the bank for a further period of three months, i.e., from February 24, 2023 to May 23, 2023, subject to review. Other terms and conditions of the Directive under reference, as modified from time to time, shall remain unchanged.
RBI issued certain Directions to Adarsh Mahila Nagari Sahakari Bank Maryadit, Aurangabad, whereby, as from the close of business on February 24, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment etc.
RBI Issued directions notice to Uravakonda Co-operative Town Bank Ltd, RBI’s press releases reads, “Whereby, as from the close of business on February 24, 2023, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment etc”.
In particular, a sum not exceeding Rs 5,000 (Rupees five 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.
RBI issued certain Directions to HCBL- Co-operative Bank Ltd, Lucknow, whereby, as from the close of business on February 24, 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.