RBI extends Directions issued to the Brahmawart Commercial Co-operative Bank Ltd., Kanpur, Uttar Pradesh till March 06, 2018
Case Brief
The Reserve Bank of India extended the directions issued to Brahmawart Commercial Co-operative Bank Ltd., Kanpur, Uttar Pradesh for a further four months, from November 07, 2017 to March 06, 2018, subject to review. The bank had been under Section 35A directions since July 07, 2015, and the release notes that the directive had already been extended earlier up to March 06, 2018. No new penalty is mentioned; this is a continuation of the existing regulatory restriction.
The Reserve Bank of India extended the directions issued to Brahmawart Commercial Co-operative Bank Ltd., Kanpur under Section 35A of the Banking Regulation Act, 1949 (AACS) for a further period of four months, from November 07, 2017 to March 06, 2018, subject to review. The release states that the bank had already been under these directions since July 07, 2015 and that the modification should not be construed as either improvement or deterioration in the bank's financial position.
Severity Assessment
This is an extension of RBI Section 35A directions on a co-operative bank, which is a broad business restriction and is treated as severity 4.
The bank continues to operate under the existing RBI Section 35A restrictions until March 06, 2018, subject to further review or modification by RBI. Depositors and counterparties remain affected by the ongoing operating constraints.
Published as Brahmawart Commercial Co-operative Bank Ltd., Kanpur, Uttar Pradesh
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