Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
22 Jan 2023
Case Brief
The Reserve Bank of India extended the validity of the directions imposed on United India Co-operative Bank Limited, Nagina, Bijnor (U.P.) for a further period of three months, from January 23, 2023 to April 22, 2023. The order continues the bank's existing restrictions under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS), originally effective from the close of business on July 22, 2022. RBI stated that the directions are subject to review and clarified that the release should not be interpreted as cancellation of the bank's licence.
Why RBI Acted
RBI extended the validity of the directions already in force against United India Co-operative Bank Limited, Nagina, Bijnor (U.P.) for three months, from January 23, 2023 to April 22, 2023, under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS). The bank had been under direction since the close of business on July 22, 2022, and the extension continues the existing operating restrictions subject to review. The release explicitly states that the directions should not be construed as cancellation of the banking licence.
Operating Impact
The bank remains subject to the same RBI operating constraints until April 22, 2023, unless modified earlier by RBI. Customers and counterparties continue to deal with the bank under the imposed restrictions, which may affect normal banking operations.
Regulatory Basis
- Section 35 A read with section 56 of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Extension
- Order Date
- 20 Jan 2023
- Effective From
- 23 Jan 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank