Case Brief
The Reserve Bank of India extended the existing directions applicable to The Bhopal Nagrik Sahakari Bank Ltd., Bhopal for a further six-month period from November 01, 2014 to April 30, 2015, subject to review. These directions, issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56, restrict the bank from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering into compromises or arrangements, and selling or disposing of assets except as otherwise permitted. Depositors are allowed to withdraw only up to Rs 1,000 from each savings, current, or other deposit account, subject to conditions. RBI also clarified that the directions should not be construed as cancellation of the bank’s licence and that the bank will continue banking business under restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location