Case Brief
The Reserve Bank of India extended the existing Directions issued to Dr. Babasaheb Ambedkar Nagari Sahakari Bank Maryadit, Aurangabad, Maharashtra for six more months from November 04, 2014 to May 03, 2015. The order continues the bank’s restrictions under Section 35A of the Banking Regulation Act, 1949 read with Section 56. As a result, the bank cannot sanction or renew loans and advances, make investments, incur liabilities including fresh deposits and borrowings, make payments, or transfer/dispose of assets except as permitted by RBI. Depositors may withdraw only up to Rs. 1,000 once during the directions period. RBI also clarified that the directions do not amount to cancellation of the bank’s licence and that the bank may continue business subject to restrictions while its financial position improves.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location