Case Brief
The Reserve Bank of India imposed Directions on Shri Sai Urban Cooperative Bank Ltd., Mukhed, District Nanded, Maharashtra under Section 35A of the Banking Regulation Act, 1949 read with Section 56, effective from close of business on July 1, 2015 for six months. The Directions prohibited the bank from granting or renewing loans and advances, making investments, incurring liabilities including fresh deposits and borrowings, disbursing payments except as allowed, entering into compromises or arrangements, and disposing of assets except as notified by RBI. Deposit withdrawals were restricted to ₹1,000 per account on one occasion during the Directions period beginning July 2, 2015. RBI clarified that the order was not a cancellation of licence and that the bank would continue operations with restrictions, subject to possible modification later.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location