Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
10 Jun 2016
Case Brief
RBI notified an extension of the existing directions applicable to Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, District Pune, Maharashtra. The original directions, first issued on September 10, 2014 and extended several times thereafter, were further extended by a modified directive dated June 6, 2016 for three months from June 10, 2016 to September 10, 2016. The release says the other terms and conditions remain unchanged and adds that the extension should not be interpreted as RBI being satisfied with any substantive improvement in the bank's financial position.
Why RBI Acted
The bank had been placed under RBI directions from September 12, 2014, and those directions were extended multiple times. By the June 6, 2016 modified directive, the period of operation of the earlier directive chain was extended for a further three months from June 10, 2016 to September 10, 2016, subject to review, with all other terms and conditions unchanged. RBI also clarified that the modification should not be construed as satisfaction of substantive improvement in the bank's financial position.
Operating Impact
The bank continues to operate under the same RBI-imposed directions and any associated operational constraints until September 10, 2016, unless reviewed earlier. Depositors and counterparties remain affected by the ongoing restrictions, and the bank must continue complying with the unchanged terms of the directive.
Action Facts
- Primary Impact
- Extension
- Order Date
- 6 Jun 2016
- Effective From
- 10 Jun 2016
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank