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Dr. Shivajirao Patil Nilangekar Urban Co-operative Limited

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

17 Oct 2019

Case Brief

The Reserve Bank of India, acting in the public interest, had issued directions to Dr. Shivajirao Patil Nilangekar Urban Co-operative Limited, Nilanga, Dist. Latur, Maharashtra under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 with effect from the close of business on February 16, 2019. In this release, RBI has further extended those directions for six months, from October 16, 2019 to April 15, 2020, subject to review. The directions stipulate restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI says the directions are not to be construed as cancellation of the bank’s licence, and the bank may continue to undertake banking business with restrictions until its financial position improves.

Why RBI Acted

Capital & exposure normsOther

The Reserve Bank of India had earlier issued directions to Dr. Shivajirao Patil Nilangekar Urban Co-operative Limited, Nilanga, Dist. Latur, Maharashtra under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56, from the close of business on February 16, 2019. RBI has now extended those directions for a further six months, from October 16, 2019 to April 15, 2020, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also states that the directions should not be construed as cancellation of the banking licence, and that the bank will continue banking business with restrictions until its financial position improves.

Operating Impact

The bank must continue operating under RBI-imposed limits on withdrawals and deposit acceptance through April 15, 2020, unless modified earlier. Depositors are directly affected by the ceilings, while the bank remains open but constrained in its normal business operations.

Regulatory Basis

  • Section 35A of the Banking Regulation Act, 1949 (AACS)
  • Section 56 of the Banking Regulation Act, 1949

Action Facts

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