Case Brief
What Happened
RBI extended the existing directions issued to HCBL Co-operative Bank Ltd., Lucknow for six more months, from October 16, 2015 to April 15, 2016, subject to review. These directions, first imposed on April 16, 2015 and later modified on June 29, 2015, continue to restrict the bank from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering compromise or arrangement, and selling or otherwise disposing of assets except as specifically notified by RBI. Depositors may withdraw only up to their account balances, and term deposits cannot be renewed on maturity. RBI noted that the directions should not be construed as cancellation of the banking licence.