Case Brief
The Reserve Bank of India extended the Directions already in force against Bhopal Nagrik Sahakari Bank Ltd., Bhopal (M.P.) for six more months, from November 01, 2015 to April 30, 2016, subject to review. The order was originally imposed on October 31, 2012 under Section 35A of the Banking Regulation Act, 1949 read with Section 56. Under these directions, the bank cannot grant or renew loans and advances, make investments, incur liabilities including borrowings and fresh deposit acceptance, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of property or assets except as specifically permitted by the RBI. Depositors are permitted to withdraw only up to Rs.1,000 from each savings, current, or other deposit account, subject to the RBI’s conditions. RBI also clarifies that this extension should not be construed as cancellation of the bank’s licence.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location