Case Brief
RBI issued Directions under section 35A of the Banking Regulation Act, 1949 read with section 56 against Surat Nagrik Sahakari Bank Ltd., Surat, effective from the close of business on March 1, 2013. Under the order, depositors may withdraw only up to Rs 1,000 per account, subject to stated conditions, and the bank cannot grant or renew loans, make investments, incur liabilities, accept fresh deposits, disburse payments, enter compromises/arrangements, or dispose of assets without prior written RBI approval, except as specifically permitted in the Directions. RBI clarified that the action is not a cancellation of licence and that the bank may continue to conduct banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location