Case Brief
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 (AACS) to Vasantdada Nagari Sahakari Bank Ltd, Osmanabad, Maharashtra in the public interest. The directions, effective from the close of business on November 13, 2017, impose restrictions and/or ceilings on withdrawal and acceptance of deposits for a period of six months. RBI also noted that the directions may be modified depending on circumstances, and clarified that the order should not be construed as cancellation of the bank’s licence. The bank is permitted to continue banking business subject to these restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location
- Osmanabad, Maharashtra