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Dr.Shivajirao Patil Nilangekar UCBL, Nilanga, District Latur

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

14 Jun 2021

Case Brief

The Reserve Bank of India has extended the period of its existing directions against Dr. Shivajirao Patil Nilangekar UCBL, Nilanga, District Latur, Maharashtra. The directions, originally issued from the close of business on February 16, 2019 under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), had been modified from time to time and were last extended up to June 14, 2021. RBI has now continued the same directions for a further period of one month from June 15, 2021 to July 14, 2021, subject to review. The order includes restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also notes that the directions should not be construed as cancellation of the banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.

Why RBI Acted

Capital & exposure normsCustomer protectionOther

RBI had earlier issued directions in public interest under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), effective from the close of business on February 16, 2019. The directions were modified from time to time and were last extended up to June 14, 2021. This release extends the same directions for a further one month, from June 15, 2021 to July 14, 2021, subject to review. The restrictions include ceilings on withdrawal and acceptance of deposits, and the bank may continue banking business only with these restrictions until its financial position improves.

Operating Impact

From June 15, 2021 through July 14, 2021, the bank remains constrained by RBI-imposed limits on withdrawals and deposit acceptance, affecting customers’ access to funds and the bank’s ability to operate normally. RBI may further modify the directions depending on circumstances, so the restrictions can continue or change after review.

Regulatory Basis

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

Action Facts

Primary Impact
Extension
Effective From
15 Jun 2021
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank