Directions under Section 35 A read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – Dwarakadas Mantri Nagari Sahakari Bank. Ltd., Beed

Case Brief

RBI issued directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949, to Dwarakadas Mantri Nagari Sahakari Bank Ltd., Beed, from the close of business on March 9, 2022. The bank is barred, without prior RBI approval, from granting or renewing loans and advances, making investments, incurring liabilities (including borrowings and acceptance of fresh deposits), disbursing payments, entering into compromises/arrangements, or disposing of assets, except as specifically allowed in the directive. Depositors may withdraw only up to ₹5,000 from the aggregate balance across accounts, subject to conditions. RBI stated that the action is not a cancellation of the banking licence, and the directions remain in force for six months subject to review.