Case Brief
The Reserve Bank of India issued directions to The Choundeshwari Sahakari Bank Ltd., Ichalkaranji, Kolhapur, Maharashtra under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The order restricts the bank from granting or renewing loans and advances, making investments, incurring liabilities including borrowing and acceptance of fresh deposits, disbursing payments, and transferring or disposing of assets except as notified by RBI. Depositors may withdraw only up to Rs 1,000 per savings, current or other deposit account, subject to the conditions in the directions. RBI clarified that the order should not be construed as cancellation of the bank’s licence and that the bank may continue banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location