Case Brief
RBI issued Directions to Dr. Shivajirao Patil Nilangekar Urban Co-operative Bank Ltd., Nilanga, District Latur, Maharashtra, for a period of six months starting from close of business on February 16, 2019. The bank was prohibited, without prior RBI approval, from granting or renewing loans and advances, making investments, incurring liabilities (including borrowings and fresh deposits), disbursing payments, entering compromises or arrangements, and selling or otherwise disposing of assets except as notified. Deposit withdrawals were restricted to ₹1,000 per account during the directions period, subject to adjustment against any borrowal liability of the depositor. RBI stated the directions were issued under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56, and clarified that the order should not be construed as cancellation of the banking licence; the bank would continue to operate with restrictions until its financial position improved.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location