Case Brief
The Reserve Bank of India extended the existing Section 35A directions applicable to Pioneer Urban Co-operative Bank Ltd., Lucknow for a further six months, from September 24, 2015 to March 23, 2016, subject to review. These directions, already in force since March 24, 2015, continue to restrict the bank from granting or renewing loans and advances, making investments, incurring liabilities including borrowing or accepting fresh deposits, disbursing payments, entering compromises or arrangements, and selling or disposing of property or assets except as specifically notified by RBI. The order also permits only limited withdrawals by depositors: up to ₹1,000 from a savings, current, or other deposit account, on one occasion during the entire directions period. RBI stated that the directions should not be construed as cancellation of the banking licence and may be modified depending on circumstances.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location