United Western Bank placed under moratorium

The Central government today issued an order of moratorium to the United Western Bank. The order of moratorium was been passed in public interest, in the interest of depositors and the banking system, says the government.

According to a release issued by Reserve Bank of India, the moratorium will be effective from 1400 hrs today up to and inclusive of December 1, 2006 or an earlier date, if alternate arrangements are put in place.

During this period, the Reserve Bank of India will consider various options, including amalgamation of United Western Bank with any other bank and finalise the plans in public interest and with a view to ensuring that the public deposits are protected.

'During the period of moratorium, the bank will be permitted to make only those payments that have been specified in the order of moratorium and the depositors of the United Western Bank will be permitted to withdraw, in total, up to Rs 10,000 from their savings bank account or current account or any other deposit account through any of the branches of the bank', the release added.

Further, customers of the bank will not be able to withdraw money through the ATMs of the bank/ATMs shared with other banks so as to give effect to the monetary ceiling prescribed in the moratorium. The customers, however, will be able to withdraw money up to Rs 10,000, that is, the limit specified, at any of the bank's branches.