Case Brief
The Reserve Bank of India issued directions under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 to three District Central Co-operative Banks: Osmanabad District Central Co-operative Bank Ltd., Jalna District Central Co-operative Bank Ltd., and Dhule and Nandurbar District Central Co-operative Bank Ltd. The directions bar these banks from accepting fresh deposits in any form, including savings, current, fixed, and recurring deposit accounts, but allow renewal of existing deposits in the same name and same capacity. The directions take effect on receipt by the respective banks and continue until further orders. RBI also stated that issuance of the directions should not per se be construed as rejection of the banks' licence applications.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location