Case Brief
The Reserve Bank of India issued Directions to Ajinkyatara Sahakari Bank Ltd., Satara, Maharashtra under Section 35A of the Banking Regulation Act, 1949 read with Section 56. Effective from the close of business on September 30, 2015, the bank faced broad restrictions on lending, investments, incurring liabilities, accepting fresh deposits, making payments, and disposing of assets, except as allowed in the earlier RBI directions dated September 28, 2015. Depositors could withdraw only up to ₹1,000 from each savings/current/other deposit account, subject to stipulated conditions. RBI clarified that the order was not a cancellation of the banking licence and that the bank would continue to operate with restrictions, subject to future modification based on its financial position.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location