RBI bars People’s Co-operative Bank from granting loans, accepting deposits for 6 months

The Reserve Bank of India (RBI) has barred Kanpur-based People’s Co-operative Bank from granting fresh loans or accepting deposits for a period of six months, due to its weak financial position.
The RBI also said that no amount of the total balance across all savings bank or current accounts or any other account of a depositor may be allowed to be withdrawn.
These directions will remain in force for a period of six months from the close of business on June 10, 2020 and are subject to review.
As per the restrictions, the bank shall not, without prior approval of RBI in writing 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.