Case Brief
The Reserve Bank of India extended the Section 35A Directions applicable to Vitthal Nagari Sahakari Bank Ltd., Latur, Maharashtra for a further six-month period from November 15, 2014 to May 14, 2015, subject to review. These Directions, already in force since November 15, 2013 and earlier extended once, continue to restrict the bank’s normal banking activities. The bank cannot grant or renew loans and advances, make investments, incur liabilities including borrowing and acceptance of fresh deposits, disburse or agree to disburse payments, or sell/transfer assets except as specifically permitted. Depositors are allowed to withdraw only up to Rs 1,000 per account on one occasion during the directions period. The release states that these Directions should not be construed as cancellation of the banking licence, and that the bank will continue to undertake banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location