Case Brief
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 (read with Section 56) to The Bhilwara Mahila Urban Co-operative Bank Ltd., Bhilwara. From the close of business on March 09, 2017, the bank could not, without prior written approval, grant or renew loans and advances, make investments, incur liabilities including borrowings and acceptance of fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of assets, except as permitted in the earlier directions dated March 07, 2017. The bank was also subject to a withdrawal limit of ₹1,000 per savings/current/other deposit account, subject to conditions. RBI stated that the directions were not a cancellation of banking licence and that the bank would continue banking business with restrictions until improvement in its financial position.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location