Skip to Main Content

Dr. Shivajirao Patil Nilangekar Co-operative Bank Ltd

Co-operative bankNilanga, Maharashtra

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Extension

Business restriction · Extension

S4

Published by RBI

16 Aug 2019

Case Brief

The Reserve Bank of India has further extended the directions previously issued to Dr. Shivajirao Patil Nilangekar Co-operative Bank Ltd., Nilanga, Dist. Latur, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The earlier directions had been in force from the close of business on February 16, 2019 to August 15, 2019, and the extension continues them from August 16, 2019 to October 15, 2019. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI notes that the bank will continue to conduct banking business with these restrictions until its financial position improves, and clarifies that the directions should not be construed as cancellation of the banking licence.

Why RBI Acted

Capital & exposure normsCustomer protection

RBI, in the public interest, extended the earlier directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The directions continue to impose restrictions and/or a ceiling on withdrawal and acceptance of deposits for a further period from August 16, 2019 to October 15, 2019. The release states that the bank will continue to undertake banking business with restrictions until its financial position improves.

Operating Impact

The bank must continue operating under RBI-imposed limits on deposit withdrawals and/or acceptance of deposits through October 15, 2019, unless modified earlier by RBI. Depositors are directly affected by the caps, while the bank remains permitted to undertake banking business only subject to these restrictions.

Regulatory Basis

  • Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 of Banking Regulation Act, 1949
  • sub-section (1) of Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 of Banking Regulation Act, 1949

Action Facts

Primary Impact
Extension
Effective From
16 Aug 2019
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank