Case Brief
The Reserve Bank of India extended the validity of its existing directions against CKP Co-operative Bank Ltd, Mumbai, Maharashtra, for six more months from January 31, 2016 to July 31, 2016. The underlying directions had originally been issued on April 30, 2014 and were earlier extended several times. Under the modified terms, a depositor may withdraw up to ₹10,000 from each savings bank, current, term deposit, or other deposit account, but any outstanding liability to the bank, including where the depositor is a borrower or surety and including loans against deposits, must be adjusted first against the borrowal account. The release states that the remaining terms and conditions of the directive continue unchanged and expressly notes that the extension should not be construed as indicating substantive improvement in the bank’s financial position.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location