Case Brief
The Reserve Bank of India issued a directive dated September 23, 2019 placing Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra, under Directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56. Under the order, depositors may withdraw no more than ₹1,000 from each savings, current, or other deposit account, subject to the stated conditions. The bank is also prohibited, without prior written RBI approval, from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering into compromises or arrangements, and selling/transferring/disposal of properties or assets except as specifically permitted. RBI stated that the directions do not, by themselves, mean cancellation of the banking licence and that the bank will continue banking business with restrictions until further notice or instructions.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location