Case Brief
What Happened
RBI issued directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56 to Nasik Jilha Mahila Vikas Sahakari Bank Ltd., Nasik, citing supervisory concerns from recent material developments in the bank and the need to protect depositors. The bank cannot, without prior RBI approval, grant or renew loans and advances, make investments, incur liabilities, accept fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of assets, except as permitted in the RBI directions. Depositors are allowed withdrawals up to Rs 35,000 per account, subject to the stated conditions, and the bank may incur certain essential expenses such as salaries, rent, and electricity. RBI also clarified that this is not a cancellation of banking licence; the directions will remain in force for six months from the close of business on December 9, 2025, subject to review.