Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
20 Apr 2002
Case Brief
The Central Government, acting on the Reserve Bank of India's recommendation, extended the existing moratorium in respect of The Benaras State Bank Ltd. The notification, issued on April 19, 2002, partially modified the earlier January 22, 2002 notification and continued the moratorium for a further period up to and inclusive of July 21, 2002. This is an extension of an already adverse restriction, not a fresh penalty or withdrawal.
Why RBI Acted
The Central Government, on the recommendation of the Reserve Bank of India, partially modified its earlier notification dated January 22, 2002 and extended the period of moratorium in respect of The Benaras State Bank Ltd. The moratorium was continued for a further period up to and inclusive of July 21, 2002. The release does not specify any fresh violation; it records a continuation of the existing moratorium.
Operating Impact
The bank remains under moratorium through July 21, 2002 and continues to face severe restrictions on normal operations. Depositors, counterparties, and other stakeholders remain affected by the bank's constrained functioning until the moratorium ends or is further modified.
Action Facts
- Primary Impact
- Extension
- Order Date
- 19 Apr 2002
- Effective From
- 21 Jul 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank