Case Brief
RBI extended the validity of the Section 35A directions issued to Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad, Gujarat. The order continued the earlier operating restrictions that barred the bank from granting or renewing loans and advances, making investments, incurring liabilities including fresh deposits, disbursing payments, entering compromises or arrangements, and disposing of assets except as permitted by RBI. The September 12, 2013 directive also modified the withdrawal limit so that each depositor could withdraw up to Rs 1,00,000, subject to adjustment against any borrowal obligations. The directions remained in force up to April 2, 2014 and were subject to review.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat