Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Dist. Vaishali – Extension of Period
Case Brief
The Reserve Bank of India has further extended the operating directions already in force for The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Dist. Vaishali. The directions, originally issued on June 13, 2023 and previously extended up to June 14, 2024, now continue from close of business on June 14, 2024 to close of business on September 14, 2024, subject to review. RBI says all other terms and conditions of the directive remain unchanged.
The Reserve Bank of India extended the period of operation of its existing Directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Dist. Vaishali. The directions had earlier been issued on June 13, 2023 and last extended up to close of business on June 14, 2024. RBI has now extended them for a further period of three months, from close of business on June 14, 2024 to close of business on September 14, 2024, while stating that all other terms and conditions remain unchanged.
Severity Assessment
An RBI Section 35A direction on a co-operative bank is a broad business restriction, which is severity 4 even when only extended.
The bank must continue to comply with the existing Section 35A restrictions through September 14, 2024, unless RBI reviews or modifies them earlier. The restriction continues to affect the bank’s operations and, depending on the underlying directive, may limit normal business activity for customers and counterparties.
Published as The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Dist. Vaishali
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