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RBI issues directions on Alwar Urban Co-operative Bank

RBI issues directions on Alwar Urban Co-operative Bank

New Delhi [India]: The Reserve Bank of India on Thursday notified an issue to Alwar Urban Co-operative Bank under sub-section (1) of Section 35A of the Banking Regulation Act, restricting the bank to grant or renew any loans and advances, make any investment, incur any liability without the prior approval from the RBI in writing.

The central bank also disproved any borrowal of funds and acceptance of fresh deposits to disburse any payment whether in discharge of its liabilities and obligations or otherwise.

Under Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) issued certain Directions to Alwar Urban Co-operative Bank, which included no compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets, except as notified in the RBI Directions dated March 01, 2017.

However, a copy the notice has been displayed on the bank’s premises for perusal by interested members of the public.

In particular, a sum not exceeding Rs. 1000 of the total balance in every savings bank or current account or any other deposit account may be allowed to be withdrawn subject to conditions stated in the above RBI Directions.

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. (ANI)