Case Brief
RBI issued Section 35A directions to Durga Co-operative Urban Bank Ltd., Vijayawada under the Banking Regulation Act, 1949 as applicable to co-operative societies. Effective from the close of business on July 29, 2022, the bank was barred from undertaking several core activities without prior written RBI approval, including granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, making payments, entering compromises or arrangements, and disposing of assets, except as specifically allowed in the directive. RBI also allowed limited withdrawals up to ₹1,50,000 subject to conditions and clarified that the order was not a cancellation of banking licence. The directions were stated to remain in force for six months, subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location