The United Western Bank was placed under moratorium to protect the interest of public and depositors due to erosion of its capital base with growing losses.

The moratorium will be effective from 1400 hrs on Saturday up to December 1, 2006, or an earlier date, if alternate arrangements are put in place, the Reserve Bank of India said in a statement.

"The bank's assessed Capital to Risk Weighted Asset Ratio (CRAR) turned negative at (-) 0.3 per cent as on June 30, 2006. This has jeopardised the depositors' interest," it said.

The bank was also unable to come up with any credible plan to raise fresh capital to bring its CRAR to the prescribed level, the central bank said.