Case Brief
RBI extended the directions already in force against United India Co-operative Bank Ltd., Nagina, Bijnor for three more months, from January 15, 2016 to April 14, 2016, subject to review. Under the directions, the cooperative bank cannot grant or renew loans and advances, make new investments, incur liabilities including fresh deposits, disburse payments, or dispose of assets except as specifically permitted. Depositors may withdraw only up to ₹1,000 per account on one occasion during the entire directions period. The order was issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56, and the RBI clarified that these directions should not be construed as cancellation of the bank’s banking licence.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Nagina, Uttar Pradesh