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Directions under Section 35A read with section 56 of the Banking Regulation Act, 1949 -The Shirpur Merchants' Co-operative Bank Ltd., Shirpur- (Reserve Bank of India) (08 Apr 2024)

MANU/RPRL/0232/2024

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.SED.No.S175/45-11-001/2024-2025 dated April 05, 2024, has issued certain Directions to The Shirpur Merchants' Co-operative Bank Ltd., Shirpur, whereby, as from the close of business on April 08, 2024, 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 05 2024, a copy of which is displayed on the bank's website / premises for perusal by interested members of the public. Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions.

2. The eligible depositors would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) in the same capacity and in the same right, from the Deposit Insurance and Credit Guarantee Corporation, under the provisions of Section 18A of the DICGC Act (amendment) 2021, based on submission of willingness by the concerned depositors. The depositors may contact their bank officials for further information. Details may also be accessed on the DICGC website: www.dicgc.org.in.

3. 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.

4. These Directions shall remain in force for a period of six months from the close of business on April 08, 2024 and are subject to review.

Tags : DIRECTIONS   LOANS   PRIOR APPROVAL  

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