Case Brief
RBI issued Directions to Bhagyodaya Friends Urban Co-operative Bank Ltd, Warud, Dist. Amravati, Maharashtra under Section 35A of the Banking Regulation Act, 1949 (AACS) read with section 56. The order was effective from close of business on January 17, 2019 for six months. During this period, the bank could not grant or renew loans, make investments, incur liabilities or accept fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose assets except as notified by RBI. Depositors were permitted to withdraw only up to ₹2,000 from each savings, current, or other deposit account on one occasion during the restriction period. RBI stated that the action should not be viewed as cancellation of the bank’s licence and that the bank would continue operating subject to restrictions.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location