The Reserve Bank of India, notified that Jamkhed Merchants Co-operative Bank Ltd., Ahmednagar, Maharashtra, was placed under directions for a period of six months vide directive dated April 07, 2016 from the close of business on April 12, 2016. The validity of the directions is extended for a period of six months from October 13, 2016 to April 12, 2017 vide directive dated October 06, 2016, subject to review.

Reserve Bank of India, in exercise of the powers vested in it under sub-sections (1) and (2) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, has modified the directive issued to Jamkhed Merchants Co-operative Bank Ltd., Ahmednagar, Maharashtra as under:

1. A sum not exceeding ₹ 10,000/- (Rupees ten thousand only) in every savings bank or current account or term deposit account or any other deposit account (by whatever name called), may be allowed to be withdrawn by depositor, provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, including loans against the bank deposits, the amount may be adjusted first to the relevant borrowal accounts. The amount required to pay the depositors should be kept by the bank separately in an escrow account and/or in earmarked securities which will be utilized by the bank only to pay to the depositors as per the revised directions.

The other terms and conditions of the directive under reference remain unchanged.

A copy of the directive dated October 06, 2016 notifying the above extension and modification is displayed at the bank’s premises for the perusal of public.

The aforesaid extension and/or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.

Anirudha D. Jadhav
Assistant Manager

Press Release : 2016-2017/911