Case Brief
The Reserve Bank of India placed The Kapol Co-operative Bank Ltd., Mumbai, Maharashtra, under Directions issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The order allows depositors to withdraw up to ₹3,000 per account, subject to the stated conditions, and restricts the bank from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering compromises or arrangements, or disposing of assets except as permitted in the RBI directions. RBI noted that the issuance of directions should not be construed as cancellation of the banking licence and that the bank will continue banking operations with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location