RBI lifts restriction on Uttar Pradesh Civil Secretariat Primary Co-operative Bank

New Delhi: In what could bring cheers to thousands of employees of Uttar Pradesh Civil Secretariat Primary Co-operative Bank account holders, the Reserve Bank of India (RBI) has lifted restrictions on the bank.

The Bank management committee will give a plan for the workability of the bank to RBI in next 6 weeks.

The Reserve Bank had in 2018 imposed restrictions on UP Civil Secretariat Primary Co- operative Bank Ltd., Lucknow. RBI had directed that the bank shall not grant or renew any loans and advances, make any investment, incur 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, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except to the extent and in the manner provided, without prior approval in writing from the Reserve Bank of India.

A sum not exceeding Rs 1000 of the total balance in every savings bank or current account or any other deposit account was allowed to be withdrawn by a depositor, RBI had said.

The restriction on bank had impacted 5000 employees of the secretariat.

In October this year, six people were been booked in connection with alleged corruption in the recruitment of cooperative employees during the previous Samajwadi Party government in Uttar Pradesh.

The FIR has been lodged on Tuesday evening against the then managing directors of Uttar Pradesh Cooperative Bank Limited, Hiralal Yadav and Ravikant Singh; former UP Cooperative Institutional Service Board chairman Ramjatan Yadav; secretary Rakesh Mishra; member Santosh Kumar Srivastava; and computer agency operator Ram Pravesh Yadav. They were booked under various sections of IPC including 420 (fraud), 467 (forgery for valuable security), 468 (forgery for purpose of cheating), 471 (using a genuine a forged document) and 120 B (conspiracy), he added.

There were allegations of corruption in the recruitment of assistant managers (general) and assistant managers (computer) in Uttar Pradesh Cooperative Bank in 2015-16. Allegation of corruption had also surfaced in the recruitment of managers and assistants and cashiers in 2016-17.