Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
20 Feb 2015
Case Brief
RBI extended the Directions already in place against Shatabdi Mahila Sahakari Bank Ltd., Thane, District-Thane, Maharashtra, for a further six-month period from the close of business on February 19, 2015, subject to review. The bank had been under directions since August 20, 2014. The order was issued under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56. The release also notes that the extension should not be construed as RBI being satisfied with any substantive improvement in the bank's financial position.
Why RBI Acted
The Reserve Bank of India extended the Directions issued to Shatabdi Mahila Sahakari Bank Ltd., Thane, for a further period of six months from the close of business on February 19, 2015, subject to review. The release states that the bank had been under directions since August 20, 2014, and that the directions were issued under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56.
Operating Impact
The bank continues to operate under RBI-imposed directions for another six months, subject to review. Any operational limits contained in the existing directions remain in effect, affecting the bank and its customers until RBI revises or withdraws the order. The effective date for the extension is the close of business on February 19, 2015.
Regulatory Basis
- sub section (1) of Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Effective From
- 19 Feb 2015
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank