Case Brief
The Reserve Bank of India issued directions to The Vaish Co-operative Commercial Bank Ltd., New Delhi under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56. Effective from the close of business on September 8, 2015, the bank was prohibited from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering into compromises or arrangements, and selling or disposing of assets except as permitted in the order. The direction allowed limited withdrawals up to ₹1,000 from deposit accounts, renewal of existing term deposits on maturity in the same name and capacity, and specified expenditure. RBI said the bank would continue to undertake banking business with restrictions until further notice and expressly noted that the direction should not be construed as cancellation of its banking licence.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location