Case Brief
The Reserve Bank of India issued directions under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56 against Shri Anand Co-operative Bank Ltd., Chinchwad, Pune, Maharashtra. Effective from the close of business on June 25, 2019, the bank was prohibited from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, making payments except as permitted, entering compromises or arrangements, and selling or transferring assets except within the specified carve-outs. Depositor withdrawals were capped at ₹1,000 subject to adjustments, while certain operational expenses, DICGC premium, some statutory payments, and government/SLR investments were allowed. The bank also had to notify depositors, display the directive on its website, and submit operational statements to RBI. The directions were stated to remain in force for six months and be subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location