Case Brief
What Happened
RBI issued directions to Pune Sahakari Bank Ltd., Shivajinagar, Pune under Section 35A of the Banking Regulation Act, 1949 read with Section 56. Effective from the close of business on March 10, 2023, the bank was barred from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering into compromises or arrangements, and disposing of assets except as specifically permitted by the directive. The bank may allow withdrawals up to ₹10,000 subject to the stated conditions, and eligible depositors may also claim deposit insurance up to ₹5 lakh under the DICGC framework. RBI clarified that this is not a cancellation of licence and that the bank may continue banking business under restrictions for six months, subject to review.