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The Reserve Bank of India has put Nagar Urban Co-operative Bank, Ahmednagar, under directions.
Deposit withdrawal will be restricted to ₹10,000 per depositor during the entire six months that the Bank will be under Directions, with effect from the close of business on December 6.
Under the directions, NUCB cannot grant or renew any loans and advances, make any investment, incur liability including borrow funds and accept fresh deposits, RBI said in a statement.
The co-operative bank cannot disburse payments 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. However, the action should not per se be construed as cancellation of banking license by RBI, the statement said.
The central bank said NUCB will continue to undertake banking business with restrictions till its financial position improves.
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