5 Reasons – Reserve Bank of India cancels the Licence of The Mirzapur Urban Co-operative Bank Ltd., Mirzapur (Uttar Pradesh)

  1. The Banks ceased to be insolvent
  2. All efforts to revive the bank failed
  3. As on March 31, 2009, the Gross and Net NPAs were very high and stood at 54.14% and 48.74% respectively.
  4. As on March 31, 2013, the erosion of deposit had reached the level of 27.03%
  5. A merger proposal with respect to the bank was received in June 2014 which was also not found viable, as it did not meet the regulatory requirements. As such, there is no viable merger proposal under consideration.

mirzapur_FotorIn view of the above,  RBI took the extreme measure of cancelling the licence of the bank in the interest of bank’s depositors. With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of The Mirzapur Urban Co-operative Bank Ltd., Mirzapur (Uttar Pradesh) the amount insured as per the DICGC Act, will be set in motion subject to the terms and conditions of the Deposit Insurance Scheme.

Mirzapur is famous for its hand knotted carpets and also Blue Potteries, toys of Chunar stone, Sculptures and Brassware.

Shree Chhatrapati Urban Co.op Bank Ltd., Pimple Nilakh,District – Pune (Maharashtra) under RBI Directions

To safeguard the depositor’s interest, Reserve Bank of India, vide Press Release Dt.23 Sept 2014, has issued certain directions to Shree Chhatrapati Urban Co.op Bank Ltd., Pimple Nilakh, District – Pune (Maharashtra).

The highlights of the RBI Directions are:-

  • The directions are effective close of business on September 12, 2014,
  • Depositors will be allowed to withdraw only INR 1,000/- (Rupees one thousand only) of the total balance in every savings bank or current account or any other deposit account.
  • The bank has also been restrained from granting or renewing any loans and advances, making any investment, incurring any liability including borrowal of funds and acceptance of fresh deposits, disbursing or agreeing to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and selling, transferring or otherwise disposing of any of its properties or assets except as notified in the RBI Directions dated September 10, 2014 a copy of which is displayed on the bank’s premises for perusal by interested members of the public. It can do so only with prior approval in writing from the Reserve Bank of India..

It is further clarified by Reserve Bank of India, that its directions should not per se be construed as cancellation of its banking licence as the bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.pune

This Bank is in the DICGC’s  >  List of Insured Banks > Co-operative Banks

Pimple Nilakh is a fast growing suburb of Pimpri-Chinchwad, which is situated in the western part of Pune. It is located close to Mumbai-Pune expressway, Pimple Nilakh is accessible to places like Wakad, Hinjewadi, Baner, Aundh, Pimple Saudagar and Rahatni, among others. The nearest airport is the Lohegaon airport.

The Choundeshwari Sahakari Bank Ltd., Ichalkaranji, Kolhapur, Maharashtra receives specific instructions from Reserve Bank of India

 

kolRBI has issued specific directions on The Choundeshwari Sahakari Bank Ltd., Ichalkaranji, Kolhapur, Maharashtra.

As per the directions a copy of which is displayed on the bank’s premises for perusal by interested members of the public, the bank, from the close of business on August 30, 2014, cannot, without prior approval in writing from the Reserve Bank of India –

  1. i) grant or renew any loans and advances,
  2. ii) make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits,

iii) disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise,

  1. iv) 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 Directions dated August 28, 2014.

In particular, depositors of the bank will be able to withdraw a sum not exceeding INR 1,000/- (Rupees one thousand only) of the total balance held in every savings bank or current account or any other deposit account by whatever name called, subject to the conditions stipulated in the RBI Directions.

The issue of the Directions should not per se be construed as cancellation of banking licence by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.

Ichalkaranji is known as the Manchester of Maharashtra. The name ‘Ichalkaranji’ is a compilation of three different words i.e. Ichy, Uchi and Karanji – these were the three small villages which existed during the 18th century.

 

Issue of Prepaid Forex Cards- Due Diligence and Adherence to KYC norms

 prepaid_Fotor

            In the recent past many banks have entered the arena of ‘prepaid foreign currency cards’. To increase the reach of their offerings, these cards are also made available through the network of Authorised Dealers/Full-fledged money changers.

             It has been brought to Reserve Bank of India  notice that some authorised dealers / full-fledged money changers may neither be exercising due diligence nor adhering to KYC norms while selling prepaid foreign currency cards (issued by a few select banks) to their customers.

Hence, Reserve Bank of India, vide Notification No RBI/2014-15/147 A.P. (DIR Series) Circular No.14, dtJuly 25, 2014 has larified that prepaid foreign currency cards are a form of foreign currency, similar to foreign currency notes or travellers cheques.

As such, the authorised dealers/FFMCs selling pre-paid foreign currency cards for travel purposes are required to comply with the same rigorous standards of due diligence and KYC as they would in case they were selling foreign currency notes/ travellers cheques to their customers.

It is expected after this clarification that the KYC norms will be strictly complied while selling pre-paid foreign currency cards.

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