Case Brief
RBI issued Directions to Alwar Urban Co-operative Bank Ltd., Alwar under Section 35A of the Banking Regulation Act, 1949 (read with Section 56), effective from the close of business on March 07, 2017. The restrictions prohibit the bank, without prior written approval of RBI, from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering compromises or arrangements, and selling or otherwise disposing of assets and properties, subject to exceptions noted in the earlier RBI directions dated March 01, 2017. The directions also cap withdrawals at ₹1,000 per account, subject to conditions. RBI stated that this should not be construed as cancellation of the banking licence and that the bank may continue banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location