Case Brief
RBI has extended the existing directions on United Commercial Co-operative Bank Ltd., Kanpur for another three months, from December 1, 2014 to February 28, 2015. The bank continues to operate under Section 35A directions issued under the Banking Regulation Act, 1949 (read with Section 56), which bar it from granting or renewing loans and advances, making investments, incurring liabilities including fresh deposits and borrowings, making payments, entering compromises or arrangements, and disposing of assets except as specifically permitted. Depositors may withdraw only up to Rs 1,000 per account on one occasion during the directions period. The release also states that this should not be construed as cancellation of the banking licence, and that RBI may modify the directions depending on circumstances.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location