Case Brief
The Central Government issued an Order of Moratorium against Global Trust Bank Ltd. on 24 July 2004, following an application by the Reserve Bank of India. The moratorium was imposed in public interest, in the interest of depositors and the banking system, and was to remain effective from the close of business on 24 July 2004 until 23 October 2004, unless earlier alternate arrangements were put in place. During this period, the bank could make only specified payments, and depositors were allowed to withdraw only up to Rs. 10,000 from their accounts at branches; ATM withdrawals were not permitted. RBI said it would examine options including amalgamation with another bank to safeguard public deposits.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Bank
- Action Type