Case Brief
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56 against Padamshree Dr. Vitthalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra. The directions became effective from the close of business on May 19, 2018. Depositors are allowed to withdraw only up to ₹1,000 from each savings/current/other deposit account, subject to RBI-stipulated conditions. The bank cannot, without prior written approval from RBI, 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 directions. RBI stated that the issuance of directions should not be construed as cancellation of the banking licence, and that the bank may continue to undertake banking business with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location