Case Brief
RBI issued Section 35A directions to People’s Co-operative Bank Ltd., Kanpur, Uttar Pradesh, restricting a wide range of banking operations from the close of business on June 10, 2020. The bank was barred from granting or renewing loans, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering compromises or arrangements, and selling or disposing of assets, except as notified in the RBI directions. Depositors were specifically prohibited from withdrawing any amount from savings, current, or other accounts. RBI clarified that the order is not a cancellation of the banking licence and that the directions would remain in force for six months, subject to review and possible modification depending on circumstances.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location