Press Releases

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Date : Jul 09, 2019
Directions under Section 35A of the Banking Regulation Act, 1949(AACS) – Kolikata Mahila Cooperative Bank Ltd., Kolkata

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(AACS) read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) has issued certain Directions to Kolikata Mahila Cooperative Bank Limited, 8D Krishna Laha Lane, Kolkata – 700 012, West Bengal whereby, as from the close of business on July 9, 2019, it is directed that the aforesaid 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 Directions dated June 27, 2019, 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 ₹1,000.00 (Rupees One Thousand only) of the total balance in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by a depositor provided that wherever such depositor is having liability to the bank in any manner, i.e., either as a borrower or surety, the amount may be adjusted first to the relevant borrowal account/s, subject to the conditions stated in the above RBI Directions.

The issue of the above Directions by the RBI should not per se be construed as cancellation of banking licence 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 the circumstances. These directions shall remain in force for a period of six months from the close of business on July 9, 2019 and are subject to review from time to time.

Yogesh Dayal
Chief General Manager

Press Release: 2019-2020/99