Case Brief
What Happened
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56 applicable to co-operative societies against Anjangaon Surji Nagari Sahakari Bank Ltd., Amravati. From the close of business on July 28, 2022, the bank could not undertake several activities without prior RBI approval, including granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering compromises or arrangements, or selling/transferring/disposal of assets except as notified. The directions also permitted withdrawal of up to ₹1,50,000 from the total balance across all accounts of a depositor, subject to conditions. RBI stated the order was not a cancellation of banking licence and would remain in force for six months from July 28, 2022, subject to review and possible modification.