The Reserve Bank of India (RBI) put new directions on a few urban cooperative banks last week. These UCBs are Musiri Urban Co-operative Bank Ltd, Shree Mahalaxmi Mercantile Co-operative Bank Ltd, Dabhoi (Gujarat), Banaras Mercantile Co-operative Bank Ltd., Varanasi (U.P), Faiz Mercantile Cooperative Bank Ltd, Nasik and Nagar Urban Co-operative Bank Ltd., Ahmednagar.
RBI has issued certain Directions to Musiri Urban Co-operative Bank Ltd., Musiri, whereby, as from the close of business on March 03, 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 apex bank issued certain Directions to Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, whereby, as from the close of business on March 03, 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, Directions issued by the RBI on Banaras Mercantile Co-operative Bank Ltd., Varanasi reads, “The said bank as from the close of business on March 03, 2023, 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 03, 2023 and are subject to review.
RBI has issued certain Directions to The Faiz Mercantile Cooperative Bank Ltd., Nasik, whereby, as from the close of business on March 03, 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.
It shall remain in force for a period of six months from the close of business on March 03, 2023 and are subject to review.
Extending the directions on Nagar Urban Cooperative Bank, Ahmednagar, 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 06, 2023, shall continue to apply to the bank for a further period of three months till 6 June 2023. subject to review.
All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated March 06, 2023 notifying the above extension is displayed at the bank’s premises for the perusal of the public.
