RBI clamps down on Gujarat's Khedbrahma Nagarik Sahakari Bank

KOLKATA: The Reserve Bank of India has barred Gujarat's Khedbrahma Nagarik Sahakari Bank Ltd from accepting fresh deposits and giving loans as its financial position deteriorated.

RBI said the bank shall not, without prior approval in writing from it, grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds etc. It is also temporarily barred from making payments to any one and enter into any arrangement, sell, transfer or dispose of any of its properties without RBI's prior permission.

The direction came into effect from November 1. The banking regulator announced it on Friday

RBI has also clarified that the directions should not be construed as cancellation of banking licence. The bank will continue to undertake banking business with the restrictions till its financial position improves.

Source: EconomicTimes