The KwaZulu-Natal Development Bank, Ithala will continue to operate normally, but will not be taking deposits.
This is according to a judgment, which the High Court in Pietermaritzburg delivered yesterday.
Ithala had sought an urgent court interdict against the Repayment Administrators instruction in January that its ABSA accounts be frozen.
Judge Muzi Ncube also granted the Repayment Administrator, Johan Kruger leave to appeal the judgment.
The High Courts order comes as an application for the liquidation of Ithala is pending.