Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) - Shushruti Souharda Sahakara Bank Niyamita, Bangalore- (Reserve Bank of India) (07 Apr 2022)
MANU/RPRL/0152/2022
Banking
1. It is hereby notified for information of the public that in exercise of powers vested in it under sub section (1) of Section 35A of the Banking Regulation Act, 1949, read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) vide Directive Ref. No. CO.DOS.DSD.No.S98/10-01-023/2022-2023 dated April 07, 2022, has issued certain Directions to Shushruti Souharda Sahakara Bank Niyamita, Bangalore, whereby, as from the close of business on April 07, 2022, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI Direction dated April 07, 2022, a copy of which is displayed on the bank's premises for perusal by interested members of the public. In particular, a sum not exceeding Rs. 5,000 (Rupees Five Thousand only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions.
2. The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.
3. These Directions shall remain in force for a period of six months from the close of business on April 07, 2022 and are subject to review.
Tags : DIRECTIONS PROVISION CO-OPERATIVE SOCIETIES
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