Case Brief
What Happened
The Reserve Bank of India issued directions under Section 35A of the Banking Regulation Act, 1949 (read with Section 56) to U. P. Civil Secretariat Primary Co-operative Bank Ltd., Lucknow. Effective from the close of business on September 25, 2018, the bank could not, without prior RBI approval, grant or renew loans and advances, make investments, incur liabilities including borrowings and acceptance of fresh deposits, or disburse payments, and it could not enter into compromises/arrangements or dispose of assets except as allowed in the order. The RBI also capped withdrawals at ₹1,000 per savings/current/other deposit account, with a set-off mechanism for borrowers/sureties, while permitting limited renewals of existing term deposits, certain expenditures, and investment in Government/SLR-approved securities. The directions were to remain in force for six months and were subject to review.