RBI bars People's Co-operative Bank from granting loans, accepting deposits

The central bank has also barred the co-operative bank from selling, transferring or disposing any of its properties or assets for next 6 months

The Reserve Bank of India (RBI) on Thursday barred Kanpur-based People's Co-operative Bank from granting fresh loans and accepting deposits for six months, due to its weak financial position.

The RBI also said no withdrawal of amount of a depositor will be allowed from the co-operative bank.

"As from the close of business on June 10, 2020, 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