Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
19 Oct 2012
Case Brief
The Reserve Bank of India has extended the validity of the directions already imposed on Abhinav Sahakari Bank Ltd., Rahuri, Ahmednagar, Maharashtra under Section 35A of the Banking Regulation Act, 1949 (AACS). The extension runs from October 17, 2012 to April 16, 2013, and the RBI clarified that all other terms and conditions of the original directive remain unchanged. The release also says the modification should not be interpreted as evidence of substantive improvement in the bank’s financial position.
Why RBI Acted
The Reserve Bank of India extended, for a further six months from October 17, 2012 to April 16, 2013, the directions earlier imposed on Abhinav Sahakari Bank Ltd., Rahuri, Ahmednagar, Maharashtra under Section 35A of the Banking Regulation Act, 1949 (AACS). The release states that the prior directive dated April 13, 2012 was modified only to extend its validity, and that all other terms and conditions remain unchanged. RBI also noted that the modification should not be construed as indicating satisfaction with any substantive improvement in the bank’s financial position.
Operating Impact
The bank remains subject to the existing RBI operating restrictions for the extended period, with the same terms continuing unchanged. The restrictions affect the bank’s operations and any customers or counterparties impacted by those directions until April 16, 2013, unless further modified or withdrawn.
Regulatory Basis
- Section 35A of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 11 Oct 2012
- Effective From
- 17 Oct 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank