March 26, 2015<\/strong><\/p>\n

Pioneer Urban Co-operative Bank Ltd., Lucknow placed under
\nDirections<\/strong><\/p>\n

The Reserve Bank of India has, after
\nsatisfying itself that it is necessary in public interest to do so, issued certain directions to Pioneer Urban
\nCo-operative Bank Ltd., Lucknow.
\nThe instructions will remain in force for a period of six months, subject to
\nreview from time to time.<\/p>\n

Accordingly, Pioneer Urban Co-operative Bank
\nLtd., Lucknow, from the close of business
\non March 24, 2015, cannot, without prior approval in writing from the Reserve Bank of India, grant or renew any
\nloans and advances, make any investment,
\nincur liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any
\npayment whether in discharge of its liabilities and obligations or otherwise,
\nenter into any compromise or arrangement and sell, transfer or otherwise
\ndispose of any of its properties or assets. The bank will:<\/p>\n

(i) be allowed to pay to a depositor a sum
\nnot exceeding Rs.1,000\/- (Rupees one thousand only) of the total balance in every savings bank or
\ncurrent account or any
\nother deposit account. If, however, the depositor has any liability to the bank, that is, either as a
\nborrower or surety, the amount may be adjusted first to the relevant borrowal account\/s;<\/p>\n

(ii)       
\nbe able to
\nrenew the existing term deposits on maturity in the same name and same capacity;<\/p>\n

(iii)      make such expenditure as permitted in the
\nDirection;<\/p>\n

(iv)      not incur or extinguish any other liability
\nunless specifically approved in writing by the Reserve Bank of India; and<\/p>\n

(v)       continue to undertake banking business with
\nrestrictions till its financial position improves.<\/p>\n

Detailed directions are displayed on the bank’s
\npremises for interested members of
\npublic to peruse.<\/p>\n

The Reserve Bank may consider modifications
\nof the directions depending upon
\ncircumstances.<\/p>\n

The issue of direction by the RBI should not
\nper se be construed as cancellation
\nof the banking licence of the bank.<\/p>\n

The Reserve Bank of India has issued the
\ndirections in exercise of the powers vested in it under sub-section (1) of Section 35A of the Banking
\nRegulation Act, 1949 (As
\nApplicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949.<\/p>\n","protected":false},"excerpt":{"rendered":"

March 26, 2015 Pioneer Urban Co-operative Bank Ltd., Lucknow placed under Directions The Reserve Bank of India has, after satisfying itself that it is necessary in public interest to do so, issued certain directions to Pioneer Urban Co-operative Bank Ltd., Lucknow. The instructions will remain in force for a period of six months, subject to … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[346],"class_list":["post-1868","post","type-post","status-publish","format-standard","hentry","category-banking","tag-pioneer-urban"],"yoast_head":"\n