Case Brief
What Happened
The Reserve Bank of India issued a modification to the existing Section 35A directions applicable to The City Co-operative Bank Ltd., Mumbai, Maharashtra. The bank had originally been placed under directions on April 17, 2018, and those directions were later extended, including an extension up to April 17, 2019. Under the earlier terms, depositors could withdraw only up to ₹1,000 from their accounts. In this release, RBI partly modified Paragraph 1(i) of the directive so that depositors may now withdraw up to ₹5,000 from savings, current, term deposit, or any other deposit account, subject to adjustment against any liability owed to the bank. All other conditions of the existing directions continue unchanged. RBI also clarified that this relaxation should not be interpreted as indicating substantive improvement in the bank’s financial position.