Case Brief
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 (AACS) to The South Indian Co-operative Bank Ltd., Mumbai, in public interest. The order restricts the bank from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering into compromises or arrangements, and selling or transferring assets without prior written approval from RBI. Depositors may withdraw only up to Rs. 1,000 from each savings, current, or other deposit account, and existing term deposits may be renewed on maturity in the same name and capacity. The release indicates that any relaxation would be considered on review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location
- Mumbai