RBI extends ban on UP-based People’s Co-operative Bank for 3 months
The Reserve Bank of India (RBI) has extended the restrictions on People’s Co-operative Bank Ltd., Kanpur for a further period of three months from September 11 to December 10.
Through the instructions issued under Section 35A of the Banking Regulation Act, 1949 (AACS), the Bank is subject to restrictions with effect from June 10, 2020.
“The validity of the directive, which was last extended till September 10, 2021, has been further extended for a period of three months from September 11, 2021 to December 10, 2021 under directive DOR.MON.D-35/12.28.059 /2021-22 dated September 8, 2021 subject to review,” said an RBI statement on Saturday.
Section 35A of the Banking Regulation Act, 1949 empowers the central bank to give directions to banks and take action so as to prevent the conduct of the affairs of any banking company in a manner prejudicial to or prejudicial to the interests of the depositors. interests of the banking company.
As per the directions, the Kanpur-based cooperative bank has been barred from giving fresh loans and accepting deposits for six months without prior approval of RBI, due to its weak financial position.
In its statement dated June 11, 2020, RBI had said, “In particular, withdrawal of aggregate balance in all savings bank or current account or any other account of the depositor may not be permitted.” Sanctions.
Read also: RBI imposed a fine of Rs 50 lakh on this cooperative bank
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