Case Brief
RBI issued Directions under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56 against Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra. The order took effect from the close of business on July 10, 2015 and curtailed core operations: the bank could not grant or renew loans and advances, make investments, incur liabilities including borrowings and fresh deposits, disburse payments, enter compromises or arrangements, or dispose of assets without prior written approval from RBI. Depositors were allowed to withdraw only up to ₹1,000 from each savings/current/other deposit account, subject to the conditions in the Directions. RBI also stated that the issuance of these Directions should not be construed as cancellation of the banking licence and that the bank would continue to undertake banking business with restrictions until its financial position improved.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location