Case Brief
RBI issued directions to Shree Govardhansinghji Raghuvanshi Sahakari Bank Ltd., Nandurbar, Maharashtra under Section 35A of the Banking Regulation Act, 1949 read with Section 56, effective from the close of business on September 9, 2015. The bank could not, without prior written approval from RBI, grant or renew loans and advances, make investments, incur liabilities including borrowings and fresh deposits, disburse payments, enter compromises or arrangements, or sell/transfer/dispose of assets, except as specified in the directions. RBI also limited withdrawals from deposit accounts to Rs. 1,000 per depositor subject to conditions. The release explicitly states that this is not a cancellation of banking licence and that the bank would continue operating under restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location