RBI announced last Friday that four urban co-op banks will have no respite and they will continue to be under restrictions in terms of their banking operations. These banks are Mumbai based Sangli Sahakari Bank, Delhi based Ramgarhia Co-operative Bank, yet again Mumbai based Sahebrao Deshmukh Co-operative Bank and Tumkur based Sri Sharada Mahila Co-operative Bank Limited.
The Directive on Sangli Sahakari Bank Limited, Mumbai shall continue to apply to the bank till October 08, 2023, subject to review, announced the RBI. The UCB was first placed under Directions from the close of business on July 08, 2022, for a period of six months.
The Reserve Bank of India had placed Ramgarhia Co-operative Bank Ltd, New Delhi – under Directions from the close of business on July 08, 2022, for a period of six months up to January 08, 2023, the validity of which was extended up to July 08, 2023.
The Reserve Bank of India, in exercise of the powers vested in it hereby directs that the aforesaid Directions shall continue to apply to the bank till October 08, 2023, subject to review.
Similarly, the RBI had placed Sahebrao Deshmukh Co-operative Bank Limited, Mumbai, Maharashtra under Directions from the close of business on July 08, 2022, for a period of six months.
In a release it said “It is hereby notified for the information of the public that, the Reserve Bank of India, in the exercise of powers vested in it hereby directs that the aforesaid Directions shall continue to apply to the bank till October 08, 2023, subject to review.
Earlier, we reported in these columns that RBI had issued Directions to Sri Sharada Mahila Co-operative Bank Limited, Tumkur, Karnataka dated July 07, 2022. In a press release RBI says that it is necessary to extend the period of operation of the Directive for a further period of three months from July 09, 2023 to October 08, 2023 subject to review.
Other terms and conditions of the Directive under reference as modified from time to time, shall remain unchanged, the release added
All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated July 04, 2023, notifying the above extension is displayed at the bank’s premises for the perusal of the public.
The aforesaid extension and/or modification by the Reserve Bank of India should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank, says RBI.
