The Reserve Bank of India issued certain directions to United India Co-operative Bank based Nagina, Bijnor (Uttar Pradesh). The UCB has been asked not to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits.
It can also not 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 off any of its properties or assets except to the extent and in the manner provided by RBI directions.
However the bank may renew the existing term deposits on maturity in the same name and same capacity and may incur any expenditure as permitted in the captioned Directions.
It can also invest in Government /SLR approved securities.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 the 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.