RBI has placed “Babaji Date Mahila Sahakari Bank Ltd., Yavatmal”, under direction whereby, as from the close of business on November 8, 2021, the bank shall not, without prior approval of RBI conduct some of the activities such as renewing any loans and advances, making any investment etc.
A copy of the Direction is displayed on the bank’s premises for perusal by interested members of the public. Considering the bank’s present liquidity position, a sum not exceeding Rs 5000/- (Rupees Five Thousand only) from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn.
The UCB is, however, allowed to set off loans against deposits subject to the conditions stated in the 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 November 8, 2021 and are subject to review.