Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949– Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru, Karnataka –Enhancement of withdrawal limit for depositors to ₹1 lakh
Case Brief
RBI announced a relaxation of the existing All-Inclusive Directions applicable to Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru. The depositor withdrawal limit was increased from ₹35,000 to ₹1,00,000 per depositor, based on a review of the bank’s liquidity position and ability to pay depositors. The original directions, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, continue to apply in all other respects.
The bank was already under All-Inclusive Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949, imposed in the interest of depositor protection. After reviewing the bank’s liquidity position and ability to pay depositors, RBI decided to increase the withdrawal ceiling per depositor to ₹1,00,000 (inclusive of the earlier ₹35,000), while keeping all other terms and conditions of the original directive unchanged.
Severity Assessment
This is an extension/relaxation within an existing Section 35A All-Inclusive Directions regime on a cooperative bank, which falls under the structural severity-4 business restriction bucket.
Depositors of the bank may now withdraw up to ₹1 lakh per depositor, which allows more than 54% of depositors to withdraw their entire account balance. The bank continues to operate under the existing regulatory restrictions, and all other terms of the directive remain in force.
Published as Sri Guru Raghavendra Sahakara Bank Niyamitha
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Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru
Business restriction · Extension
Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru
Business restriction · Extension
Sri Guru Raghavendra Sahakara Bank Niyamitha
Business restriction · Extension
Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru
Business restriction · Extension
Sri Guru Raghavendra Sahakara Bank Niyamitha
Business restriction · Extension
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