Directions under Section 35A of the Banking Regulation Act, 1949 (AACS) – Hindu Cooperative Bank Limited, Pathankot, Punjab

Case Brief

The Reserve Bank of India issued directions to Hindu Cooperative Bank Limited, Pathankot, Punjab under Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the Act. The directions, effective from the close of business on March 25, 2019, impose certain restrictions on the bank. RBI said the details are displayed on the bank’s website and premises, and it may consider modifications depending on circumstances. The release clarifies that the order is not a cancellation of banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.