Case Brief
RBI issued Directions to Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra for six months with effect from close of business on January 29, 2015. The order restricted the bank from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering compromises or arrangements, and disposing of assets except as permitted by RBI. Depositors could withdraw up to Rs 1,000 from each savings, current, or other deposit account on one occasion during the currency of the Directions. The release clarifies that the action is not a cancellation of banking licence and that the bank will continue to undertake banking business subject to restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location