Case Brief
What Happened
RBI issued a directive dated June 21, 2019 placing Shri Anand Co-operative Bank Ltd., Chinchawad, Pune, Maharashtra, under Section 35A Directions under the Banking Regulation Act, 1949 read with Section 56. The bank was allowed to let depositors withdraw only up to ₹1,000 from each account, subject to the conditions in the directive. It could not, without prior RBI approval, grant or renew loans and advances, make investments, incur liabilities including borrowings and acceptance of fresh deposits, make payments, enter into compromises or arrangements, or sell/transfer/dispose of properties or assets except as permitted. RBI clarified that the order was not, by itself, a cancellation of the banking licence and that the bank would continue to operate with restrictions until its financial position improved. The directions were stated to remain in force for six months from the close of business on June 25, 2019.