Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra

RBI has withdrawn the All Inclusive Directions imposed on Kisan Nagari Sahakari Bank Maryadit, Parbhani, Maharashtra. The bank can continue normal banking business from the close of business on April 09, 2015.

The earlier operating restrictions no longer apply from the close of business on April 09, 2015. The bank may resume/continue regular banking operations, and the withdrawal removes the prior constraints on its activities.

• sub section (2) of Section 35A of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies)

RBI placed Kisan Nagari Sahakari Bank Maryadit, Parbhani under six-month Directions restricting major banking activities. The bank could continue operating only with significant limits, including a Rs 1,000 withdrawal cap per account during the period.

The bank must operate under RBI-imposed restrictions for six months from January 29, 2015, with no fresh lending, deposit acceptance, or most liability-creating actions unless specifically approved. Depositors are affected by the withdrawal cap, while the bank’s management must comply with RBI’s notified exceptions and any future modification of the Directions.

• Section 35A(1) of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949

RBI imposed a Rs 5 lakh penalty on Kisan Nagari Sahakari Bank Maryadit, Parbhani. The bank was found to have failed to disclose a bank guarantee issued and violated RBI directions on guarantees, co-acceptance and letters of credit.

The bank must bear the financial penalty; the release does not announce any business restriction, license action, or operational ban. The forward-looking impact is limited to the monetary consequence and compliance signal for the bank.

• Section 47A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
• Section 35(2) and 46(1) of the Banking Regulation Act