Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
15 Dec 2020
Case Brief
The Reserve Bank of India extended the existing Directions imposed on Karnala Nagri Sahakari Bank Ltd., Panvel, Raigad, Maharashtra. The bank had been placed under Directions from the close of business on June 15, 2020 for six months, and the present release states that those Directions will continue to apply till June 15, 2021, subject to review. RBI also clarified that all other terms and conditions of the original directive remain unchanged and that the extension should not be construed as satisfaction with the bank’s financial position.
Why RBI Acted
The Reserve Bank of India had originally placed Karnala Nagri Sahakari Bank Ltd., Panvel, Raigad, Maharashtra under Directions from the close of business on June 15, 2020 for six months. By the present release, RBI ordered that those Directions continue to apply till June 15, 2021, subject to review, with all other terms and conditions unchanged, under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank continues to operate under RBI-imposed restrictions until June 15, 2021, subject to review. Customers and counterparties remain affected by the same operational constraints as under the original Directions, and no relaxation of terms is provided in this release.
Regulatory Basis
- Section 35 A
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 14 Dec 2020
- Effective From
- 15 Jun 2020
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank