Case Brief
RBI, through a directive dated February 18, 2016, extended the directions applicable to Rupee Co-operative Bank Ltd., Pune, Maharashtra for six more months, from February 22, 2016 through August 21, 2016, subject to review. The bank was allowed to let depositors withdraw no more than ₹20,000 per account across savings, current, term deposit, and other deposit accounts, with any outstanding liability to the bank first being adjusted against the withdrawal amount. The directions were issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56. RBI clarified that the directions should not be construed as cancellation of the bank’s licence, and that the bank would continue to conduct banking business under restrictions until its financial position improved.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location