Case Brief
RBI issued Directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the AACS Act to Bidar Mahila Urban Co-operative Bank Ltd., Bidar. Effective from the close of business on February 28, 2019, the bank was restricted from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering into compromises or arrangements, and selling or transferring assets without prior written approval of RBI. The Directions also limited withdrawals from deposit accounts to ₹1,000 subject to stated conditions. RBI noted that the order did not amount to cancellation of the banking licence and that the bank would continue operating under restrictions until its financial position improved.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location