- (1.) WE have heard learned counsel appearing for the appellant.
(2.) A writ petition was filed by the petitioner (appellant herein), a senior citizen, with the prayer for setting aside the orders dated 24.10.2011, 13.04.2012 and 22.10.2012 passed by the Reserve Bank of India, imposing certain conditions on the respondent No.3 -Ajmer Urban Co -operative Bank (for short, 'Co -operative Bank') with regard to disbursement of the amount, on maturity of the fixed deposit. The petitioner also prayed for return of the amount deposited by him in Co -operative Bank, in the fixed deposit, along with interest and expenses.
(3.) IN the reply filed by the Reserve Bank of India, it was stated that the directive dated 24.10.2011, prohibiting withdrawal of amount in excess of Rs.1,000/ - from the deposit accounts, was issued by the Reserve Bank of India, in exercise of powers under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (for short, 'the Act'), in public interest, and in the interest of depositors, to restrict preferential payment, preserve assets of the Co -operative Bank, and in order to give the Co -operative Bank, an opportunity to improve its financial position. Section 35A of the Banking Regulation Act provides that where the Reserve Bank of India is satisfied, that in the public interest, or in the interest of the banking policy, or to prevent the affairs of any co -operative bank, being conducted in a manner, detrimental to the interests of the depositors, or in a manner, prejudicial to the interests of the co -operative bank, or to secure proper management of the banking business of any co -operative bank, generally, it is necessary to issue directions to the co -operative banks, or to any co -operative bank, in particular, it may, from time to time, issue such directions, as it deems fit, and the co -operative banks or the co -operative bank, as the case may be, shall be bound to comply with such directions.;