Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
1 Aug 2020
Case Brief
The Reserve Bank of India has extended the existing Section 35A directions applicable to Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra. The directive, originally issued on May 18, 2018 and previously extended up to July 31, 2020, will now continue from August 1, 2020 to October 31, 2020. The release explicitly states that all other terms and conditions remain unchanged and that the extension should not be construed as indicating RBI satisfaction with substantive improvement in the bank’s financial position.
Why RBI Acted
The Reserve Bank of India, exercising powers under Section 35A read with Section 56 of the Banking Regulation Act, 1949, continued the directive originally issued on May 18, 2018 and last extended up to July 31, 2020. The order states that the directive will continue to apply for a further period of three months from August 1, 2020 to October 31, 2020, with all other terms and conditions remaining unchanged.
Operating Impact
The bank continues to operate under the same RBI-imposed restrictions for the extension period, subject to review. Customers and other stakeholders remain affected by the ongoing operational constraints until the directions expire or are modified further.
Regulatory Basis
- Section 35 A
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 24 Jul 2020
- Effective From
- 1 Aug 2020
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank