Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
10 Mar 2015
Case Brief
RBI has extended the Directions issued to Shree Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, District-Pune, Maharashtra, for a further six months from the close of business on March 11, 2015, subject to review. The bank had been under these directions since September 12, 2014. The directions were issued under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The release adds that the directions should not be taken to mean RBI was satisfied with any substantive improvement in the bank's financial position.
Why RBI Acted
The Reserve Bank of India extended the Directions already in force against Shree Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, District-Pune, Maharashtra for a further period of six months from the close of business on March 11, 2015, subject to review. The directions were originally in place since September 12, 2014 and were issued under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56. The release explicitly says the issuance of directions should not be construed as evidence of substantive improvement in the bank's financial position.
Operating Impact
The bank remains subject to RBI-imposed operating restrictions for the extended period, with continuation subject to review. Depositors and other stakeholders remain affected by the ongoing directions, and the bank must continue operating within the limits imposed by the order until RBI revises or withdraws it.
Regulatory Basis
- Section 35A(1) of the Banking Regulation Act, 1949
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 11 Mar 2014
- Effective From
- 11 Mar 2015
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank