Thursday, October 15, 2015

Directions to Mercantile Urban Co-operative Bank Ltd., Meerut (Uttar Pradesh)



Reserve Bank of India on October 7, 2015 vide Press Release issued specific directions to Mercantile Urban Co-operative Bank Ltd., Meerut (Uttar Pradesh)

The directions were issued by Reserve Bank of India to safe guard the interest of the public

The directions are as under and are applicable from the close of business on October 06, 2015,  shall not, without prior approval in writing from the Reserve Bank of India :-

  • ·       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 to the extent and in the manner provided, among others, hereunder :

*    A sum not exceeding 1000/- (Rupees one thousand only) of the total balance in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by a depositor provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, the amount may be adjusted first to the relevant borrowal account/s.

*    Renewal of the existing term deposits on maturity in the same name and same capacity.

*    Such expenditure as permitted in the captioned Directions.

*    May invest in Government / SLR approved securities.

Mercantile Urban Co-operative Bank Ltd., Meerut (Uttar Pradesh)  shall also not incur or extinguish any other liability unless specifically approved in writing by the Reserve Bank of India.

The issue of directions by the RBI should not per se be construed as cancellation of banking licence by RBI. The bank will continue to undertake banking business with restrictions.

Validity of Instructions: The instructions will remain in force for a period of six months from the close of business on October 06, 2015 and are subject to review from time to time.

          Meerut has plenty of tourist attractions with the top attractions being Augharnath Mandir, Hastinapur and St. John’s Church.

          A variety of street food too is available in Meerut.