Case Brief
RBI, by directive dated April 17, 2018, placed The City Co-operative Bank Ltd., Mumbai, Maharashtra under Directions issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The restrictions limit depositor withdrawals to ₹1,000 per savings/current/other deposit account, subject to conditions, and bar the bank from granting or renewing loans, making investments, incurring liabilities including fresh deposits or borrowings, disbursing payments, entering compromises or arrangements, or disposing of assets without prior written RBI approval, except as specifically permitted in the directions. RBI clarified that the order is not a cancellation of banking licence and stated the bank would continue to undertake banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location