Case Brief
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 to Khedbrahma Nagarik Sahakari Bank Ltd., Khedbrahma, District Sabarkantha, Gujarat. From the close of business on October 31, 2011, the bank could not, without prior RBI approval, grant or renew loans and advances, make investments, incur liabilities including borrowings and fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of assets except as permitted under the RBI directions dated October 24, 2011. RBI stated that the directions were not, per se, a cancellation of banking licence, and the bank would continue to undertake banking business subject to the restrictions until its financial position improved.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location