Case Brief
Effective close of business on September 12, 2014, the Reserve Bank of India issued Directions to Shree Chhatrapati Urban Co.op Bank Ltd., Pimple Nilakh, District Pune (Maharashtra), under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The bank was permitted to allow depositors to withdraw only Rs 1,000 from each savings, current, or other deposit account. It was also restrained from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering into compromises or arrangements, and selling/transferring/disposing of assets except as specifically notified in the RBI directions dated September 10, 2014 or with prior written approval from RBI. RBI stated that these directions should not be construed as cancellation of the bank's licence and that the bank would continue to operate with restrictions until its financial position improved.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location