Case Brief
RBI issued fresh Section 35A directions to The Madgaum Urban Co-operative Bank Ltd., Margao, Goa, effective from the close of business on May 02, 2019. The order restricts the bank from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, or disposing of assets except within the specified permissions. Depositor withdrawals were capped at Rs 5,000 per account, subject to adjustment against any borrowal liability, while renewals of existing term deposits and certain essential expenses were permitted. The bank was also required to forward the directive to depositors, display it on its website, and submit operational statements as prescribed by RBI. The directions were to remain in force for six months and were subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location