Case Brief
RBI issued Directions to Shivam Sahakari Bank Ltd., Ichalkaranji, Dist. Kolhapur, Maharashtra, under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The directions allow depositors to withdraw only up to ₹1,000 per account, subject to stated conditions, and prohibit the bank from undertaking several activities without prior RBI approval, including fresh lending, renewals, investments, borrowing, acceptance of fresh deposits, payment disbursements, compromise/arrangement, and disposal of assets. RBI stated that the order is not a cancellation of the banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location
- Ichalkaranji, Maharashtra