RBI extends Directions issued to The Janata Commercial Cooperative Bank Ltd., Khamgaon, (Buldhana) Maharashtra till June 13, 2015

According to the Directions, The Janata Commercial Cooperative Bank Ltd., Khamgaon 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 Rs.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 September 14, 2012 to June 13, 2015. The Directions were earlier extended on four occasions for a period of six months each.

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 : 2014-2015/1954