The Reserve Bank today imposed restrictions in terms of business activities on Goa-based Mapusa Urban Co-operative Bank in view of its deteriorating financial conditions.
"...The bank (Mapusa Urban Co-operative Bank of Goa Ltd) 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...," the RBI said in a statement.
These directions should not be construed as cancellation of banking licence by the RBI, it said adding "the bank will continue to undertake banking business with restrictions till its financial position improves".
The restrictions will also apply for disbursement of any payment in discharge of its liabilities or obligations or otherwise.
It has also been asked not to 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.
