The Reserve Bank of India has extended directions for a further period of six months from April 24, 2015 imposed on The Panihati Co-operative Bank Ltd., Panihati, Kolkata, West Bengal.
The directions will continue to apply to the bank until October 23, 2015, subject to review. The Reserve Bank had first placed the bank under directions for six months on April 24, 2014 due to its very precarious financial position and the validity of which was subsequently extended up to April 23, 2015.
According to the Reserve Bank’s directions, The Panihati Co-operative Bank cannot, without the prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur any liability and so many other restrictions.
A copy of the directions is also displayed on the bank’s premises for perusal by interested members of public. However, the issue of the directions by the Reserve Bank should per se not be construed as cancellation of banking licence by the Reserve Bank.
