Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
24 Jun 2021
Case Brief
The Reserve Bank of India extended the period of its existing directions against Shri Anand Co-operative Bank Limited, Chinchwad, Pune, Maharashtra. The bank had originally been placed under directions from the close of business on June 25, 2019, and the latest extension continues those directions until September 24, 2021 under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The release says all other terms and conditions remain unchanged and that the extension should not be construed as RBI being satisfied with the bank’s financial position.
Why RBI Acted
The Reserve Bank of India had earlier placed Shri Anand Co-operative Bank Limited under directions from June 25, 2019, and this release extends those directions further. The release states that under Section 35A read with Section 56 of the Banking Regulation Act, 1949, the aforesaid directions shall continue to apply until September 24, 2021, with all other terms and conditions remaining unchanged.
Operating Impact
The bank must continue operating under the same RBI-imposed restrictions until September 24, 2021, subject to review. Customers and counterparties remain affected by the unchanged operational limits during the extended period.
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
- 22 Jun 2021
- Effective From
- 25 Jun 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank