Case Brief
What Happened
RBI issued fresh directions to The Seva Vikas Co-operative Bank Limited, Pune under Section 35A of the Banking Regulation Act, 1949 read with Section 56 applicable to co-operative societies. The bank is barred, without prior RBI approval in writing, from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and fresh deposits, disbursing payments, entering compromises or arrangements, and selling or disposing of assets except as allowed in the directions. The release specifically says the bank will continue to undertake banking business with restrictions, and that the order is not to be construed as cancellation of banking licence. The directions run from the close of business on October 12, 2021 for six months, subject to review.