Case Brief
The Reserve Bank of India extended the existing directions applicable to Sri Satya Sai Nagrik Sahakari Bank Maryadit, Bhopal (M.P.) for six months, from April 09, 2015 to October 08, 2015, subject to review. These directions, originally in force from April 09, 2010, were issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56. During the currency of the order, the bank is restricted from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, making payments, entering compromises or arrangements, and disposing of assets, except as specifically allowed. Depositors are permitted to withdraw only up to Rs 1,000 from their accounts, subject to the stated conditions. RBI clarified that the directions should not be construed as cancellation of the banking licence and that the bank would continue banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location