New Delhi, May 18 (IANS) The Reserve Bank of India (RBI) on Monday issued certain directions to Etawah-based Nagar Sahakari Bank Ltd, saying that the bank will not grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits without prior approval of RBI in writing.
The bank 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 of any of its properties or assets except as notified in the RBI Direction dated May 15, 2026.
“Considering the bank’s present liquidity position, the bank has been directed to permit withdrawal of a sum not exceeding Rs 10,000 from savings bank or current accounts or any other account of a depositor but is allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions,” according to the directive.
The bank may incur expenditure in respect of certain essential items such as salaries of employees, rent, electricity bills, etc., as specified in the said Directions, it added.
The RBI said these directions are necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interests of depositors of the bank.
The RBI has, in the recent past, engaged with the Board and Senior Management of the bank for improvement in its functioning. However, lack of concrete efforts taken by the bank to address the supervisory concerns and to protect the interest of depositors of the bank, necessitated issuance of these Directions,” it added.
The eligible depositors would be entitled to receive deposit insurance claim amount of their deposits up to a monetary ceiling of Rs 5,00,000 in the same capacity and in the same right, from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as applicable under the provisions of the DICGC Act, 1961, based on submission of willingness by the depositors concerned and after due verification.
The depositors may contact the bank officials for further information.
These directions will remain in force for a period of six months from the close of business on May 18 and are subject to review.
Meanwhile, the RBI has imposed a monetary penalty of Rs 20,000 on the Aurangabad District Central Co-operative Bank Limited, Bihar (the bank) for non-compliance with certain directions issued by RBI on ‘Credit Information Reporting’.
—IANS
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