Case Brief
The Reserve Bank of India issued Directions to The Adoor Co-operative Urban Bank Ltd., Adoor, Kerala under Section 35A of the Banking Regulation Act, 1949 read with Section 56. Under the order, depositors can withdraw only up to ₹2,000 from each savings, current, or 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 fresh borrowings and fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of assets except as specifically permitted. The directions were stated to remain in force for six months from the close of business on November 09, 2018, and RBI clarified that the order should not be construed as cancellation of the banking licence.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location