Case Brief
RBI issued directions to Kolikata Mahila Cooperative Bank Limited, Kolkata, under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56. The directions, effective from the close of business on July 9, 2019, restrict the bank from granting or renewing loans and advances, making investments, incurring liabilities including fresh deposits and borrowings, disbursing payments, entering compromises or arrangements, and disposing of assets except as allowed under the earlier June 27, 2019 directions. Depositors may withdraw only up to ₹1,000 per account, and any borrower/surety liability may be adjusted first. RBI clarified that this is not a cancellation of the banking licence and that the bank will continue to operate with restrictions for six months, subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location