Case Brief
What Happened
The Reserve Bank of India extended the directions issued to Shri Swami Samarth Urban Cooperative Bank Ltd., Naldurg (Osmanabad), Maharashtra for another three months, up to February 13, 2015, subject to review. The bank had been under these directions since November 14, 2013, and the release notes that the directions were earlier extended once for six months. Under the directions, the bank cannot grant or renew loans and advances, make investments, incur liabilities including borrowings and acceptance of fresh deposits, disburse payments, compromise or arrange liabilities, or sell/transfer/dispose of properties or assets except as specifically permitted by RBI. Depositors may withdraw only up to Rs 1,000 per account during the directions period. RBI clarified that the order should not be construed as a cancellation of banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.