Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
11 Jun 2024
Case Brief
The Reserve Bank of India has further extended the operating directions already in force for The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Dist. Vaishali. The directions, originally issued on June 13, 2023 and previously extended up to June 14, 2024, now continue from close of business on June 14, 2024 to close of business on September 14, 2024, subject to review. RBI says all other terms and conditions of the directive remain unchanged.
Why RBI Acted
The Reserve Bank of India extended the period of operation of its existing Directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Dist. Vaishali. The directions had earlier been issued on June 13, 2023 and last extended up to close of business on June 14, 2024. RBI has now extended them for a further period of three months, from close of business on June 14, 2024 to close of business on September 14, 2024, while stating that all other terms and conditions remain unchanged.
Operating Impact
The bank must continue to comply with the existing Section 35A restrictions through September 14, 2024, unless RBI reviews or modifies them earlier. The restriction continues to affect the bank’s operations and, depending on the underlying directive, may limit normal business activity for customers and counterparties.
Regulatory Basis
- Section 35A read with Section 56 of the Banking Regulation Act, 1949
- sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 12 Mar 2024
- Effective From
- 14 Jun 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank