Case Brief
RBI extended the existing directions on Brahmawart Commercial Co-operative Bank Ltd., Kanpur for three more months, from January 06, 2016 to April 06, 2016, subject to review. The order continues the earlier Section 35A directions issued under the Banking Regulation Act, 1949 (AACS). The bank remains restricted from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, and entering into compromises or selling/transferring assets except as specifically permitted. Depositors may withdraw up to ₹40,000 once during the entire direction period. The release notes that the modification should not be construed as an improvement or deterioration in the bank’s financial position.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location