Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
28 Feb 2020
Case Brief
The Reserve Bank of India has extended the period of operation of its earlier All-Inclusive Directions issued to Bidar Mahila Urban Co-operative Bank Ltd., Bidar, Karnataka under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The directions, originally issued on February 21, 2019 and previously extended up to February 29, 2020, will now continue from March 01, 2020 to August 31, 2020, subject to review. No new conditions were introduced; the existing restrictions remain in force unchanged.
Why RBI Acted
The Reserve Bank of India extended the validity of its earlier All-Inclusive Directions issued to Bidar Mahila Urban Co-operative Bank Ltd., Bidar, Karnataka under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The release states that the earlier directive, already extended once, shall continue to apply from March 01, 2020 to August 31, 2020, with all other terms and conditions unchanged and subject to review.
Operating Impact
The bank remains under RBI’s existing operating restrictions for the extended period, so its operations continue to be constrained under the same terms as before. Depositors, customers, and counterparties remain subject to those limits until the directions expire or are reviewed further.
Regulatory Basis
- Section 35 A read with Section 56 of the Banking Regulation Act, 1949
- sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 1 Mar 2020
- Effective From
- 1 Mar 2020
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank