Case Brief
The Reserve Bank of India issued directions dated May 03, 2019 placing Shivajirao Bhosale Sahakari Bank Ltd., Pune, Maharashtra, under All-inclusive Directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56. Under these directions, depositor withdrawals are capped at ₹1,000 per account, and the bank cannot, without prior RBI approval, grant or renew loans and advances, make investments, incur liabilities including borrowings and acceptance of fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of assets except as specifically permitted. RBI clarified that the order is not a cancellation of the banking licence and that the bank will continue to operate with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location