Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
1 Oct 2012
Case Brief
The Reserve Bank of India has further extended the validity of directions imposed on Shri Siddhivinayak Nagari Sahakari Bank Ltd., Rasayani, Dist. Raigad, Maharashtra. The directions, originally issued on September 29, 2011 and earlier extended on March 14, 2012, were extended again via a modified directive dated September 14, 2012 for the period September 29, 2012 to March 28, 2013. The RBI stated that all other terms and conditions remain unchanged and that the modification should not be construed as satisfaction with any substantive improvement in the bank’s financial position.
Why RBI Acted
The Reserve Bank of India extended the validity period of directions previously imposed on Shri Siddhivinayak Nagari Sahakari Bank Ltd., Rasayani, Dist. Raigad, originally dated September 29, 2011 and earlier extended on March 14, 2012. The modified directive dated September 14, 2012 continued the same restrictions for six more months, from September 29, 2012 to March 28, 2013, with all other terms and conditions unchanged. This is an extension of existing Section 35A directions under the Banking Regulation Act, 1949 (AACS).
Operating Impact
The bank remains subject to the same RBI operating restrictions for the extended period through March 28, 2013. Depositors, customers, and counterparties continue to face the consequences of the unchanged directions until the new expiry date.
Regulatory Basis
- Section 35A of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 14 Sept 2012
- Effective From
- 29 Sept 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank