Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
15 Jun 2021
Case Brief
The Reserve Bank of India continued its existing Directions against Karnala Nagri Sahakari Bank Ltd., Panvel, Raigad, Maharashtra, under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The bank had first been placed under Directions from the close of business on June 15, 2020, and the validity was later extended up to June 15, 2021. In the June 15, 2021 release, RBI stated that the directions shall continue to apply till August 15, 2021, subject to review, with all other terms and conditions unchanged.
Why RBI Acted
RBI 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, later extended up to June 15, 2021. By the June 15, 2021 directive under Section 35A read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank directed that the aforesaid directions shall continue to apply till August 15, 2021, subject to review. The release also states that all other terms and conditions of the directive remain unchanged.
Operating Impact
The bank remains subject to RBI-imposed operational restrictions until August 15, 2021, subject to review. Depositors, customers, and counterparties continue to operate under the constraints of the existing directions, while the bank must comply with the unchanged terms of the order.
Regulatory Basis
- Section 35 A of the Banking Regulation Act, 1949
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 15 Jun 2021
- Effective From
- 15 Aug 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank