| The Reserve Bank of India has extended Directions issued to United Commercial Co-operative Bank Ltd., Kanpur for a further period of three months from December 1, 2014 to February 28, 2015, subject to review. The bank was under directions since June 1, 2013. According to the Directions, United Commercial Co-operative Bank Ltd., Kanpur cannot and without prior approval of the Reserve Bank 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, transfer or otherwise dispose of any of its properties or assets except as notified in the Reserve Bank’s Directions. Further, the bank can allow its depositors to withdraw a sum not exceeding `1,000 (Rupees one thousand only) of the total balance in every savings bank or current account or any other deposit account on one occasion during the period of Directions, that is, from June 1, 2013 to February 28, 2015. The Directions were earlier extended on two occasions, each for a period of six months. The Directions were imposed in exercise of powers vested in the Reserve Bank under sub section (1) of Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949. A copy of the Directions is displayed on the bank's premises for perusal by interested members of public. The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. 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. Ajit Prasad Assistant General Manager Press Release : 2014-2015/1107 |
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
