Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
31 Aug 2023
Case Brief
The Reserve Bank of India extended the operation of its existing directive issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), against Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi (Gujarat). The original directive dated March 02, 2023, was valid up to September 03, 2023; RBI has now extended it for a further three months, from September 03, 2023 to December 02, 2023, subject to review. The release states that all other terms and conditions remain unchanged.
Why RBI Acted
The Reserve Bank of India had earlier issued directions to Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi (Gujarat), under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). This release does not impose a new set of conditions; it extends the existing directive period for another three months, from September 03, 2023 to December 02, 2023, and states that all other terms and conditions remain unchanged.
Operating Impact
The bank remains under the same RBI-imposed operating restrictions during the extended period until December 02, 2023, subject to review. Customers and counterparties should expect the existing limitations to continue without change until RBI further modifies or withdraws the directive.
Regulatory Basis
- Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS)
- sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Extension
- Order Date
- 2 Mar 2023
- Effective From
- 3 Sept 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank