Case Brief
The Reserve Bank of India placed Shree Ganesh Sahakari Bank Ltd., Nashik, Maharashtra under Directions under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies, read with Section 56). The Directions cap withdrawals at Rs 1,000 per savings/current/other deposit account and prohibit the bank, without prior RBI approval, from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering compromises/arrangements, or selling/transferring/disposal of assets except as permitted. RBI stated that the order is not a cancellation of banking licence and that the bank may continue banking business subject to the restrictions until its financial position improves, with possible future modifications by RBI.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location