Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
10 Sept 2015
Case Brief
The Reserve Bank of India has further extended the period of operation of its directions issued to Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, District Pune, Maharashtra. The bank had already been placed under directions from September 12, 2014 and the validity had been extended once earlier; this latest modified directive extends the same order for another three months from the close of business on September 10, 2015, subject to review. RBI says the other terms and conditions remain unchanged and expressly notes that the modification should not be taken to mean the bank’s financial position has substantively improved.
Why RBI Acted
Shri Chhatrapati Urban Co-operative Bank Ltd. had been placed under RBI directions from September 12, 2014 for six months, later extended from March 11, 2015. This press release modifies the directive dated September 10, 2014 read with March 04, 2015 by extending its period of operation for a further three months from the close of business on September 10, 2015, subject to review, with all other terms and conditions unchanged. RBI also states that the modification should not be construed as satisfaction about substantive improvement in the bank’s financial position.
Operating Impact
The bank continues to operate under the existing RBI directions and any restrictions contained in them until the extended period ends or RBI further reviews it. Depositors, customers, and counterparties remain subject to the operational limitations imposed by the directive.
Action Facts
- Primary Impact
- Extension
- Order Date
- 1 Sept 2015
- Effective From
- 10 Sept 2015
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- Co-operative bank