Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
1 Oct 2012
Case Brief
RBI notified that the validity of the directions earlier imposed on Swami Samarth Sahakari Bank Ltd., Akkalkot, Solapur, Maharashtra, has been extended further for six months, from September 30, 2012 to March 29, 2013. The extension was issued through a modified directive dated September 14, 2012, and all other terms and conditions of the original directions remain unchanged. RBI added that the modification should not be construed as indicating substantive improvement in the bank's financial position.
Why RBI Acted
The Reserve Bank of India extended the validity period of the directions previously imposed on Swami Samarth Sahakari Bank Ltd. under Section 35A of the Banking Regulation Act, 1949 (AACS). The existing directive dated March 30, 2012 was continued from September 30, 2012 to March 29, 2013 through a modified directive dated September 14, 2012, with all other terms and conditions remaining unchanged. The release also notes that the modification should not be construed as RBI being satisfied with any substantive improvement in the bank's financial position.
Operating Impact
The bank remains subject to the existing operating restrictions under Section 35A for the extended period through March 29, 2013. The restrictions continue to affect the bank’s operations and may constrain its business activities, while customers and other stakeholders remain governed by the unchanged terms of the original directive.
Regulatory Basis
- Section 35A of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 14 Sept 2012
- Effective From
- 30 Sept 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank