The Reserve Bank of India extended directions on three urban cooperative banks for a few more months last week.
The banks on which directions have been extended include National Urban Co-operative Bank Ltd., Bahraich U.P, Suri Friends’ Union Co-operative Bank Ltd, Suri, West Bengal and Maharashtra based Saibaba Janata Sahakari Bank Limited, Latur.
The Reserve Bank of India has extended directions issued to National Urban Co-operative Bank Ltd for a period of three months from 23 July 2023 to 22 October 2023, subject to review. The Bank has been under direction from the close of business of July 22, 2022.
Another UCB which got no respite and got RBI’s Directive extended on it Suri Friends’ Union Co-operative Bank. In a release RBI said the Directive on the UCB shall continue to apply for a further period of three months from July 23, 2023 to October 22, 2023, subject to review.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances, reads the RBI press release.
The third UCB is Saibaba Janata Sahakari Bank Limited. The directions issued for a period of three months from 23 July 2023 to 22 October 2023, subject to review. All other terms and conditions of the Directive under reference shall remain unchanged, according to the RBI press release.
Earlier, last week the Reserve Bank of India had cancelled the license of Uttar Pradesh’s Bijnor based United India Cooperative Bank. In the press release RBI says “ Bijnor based United India Cooperative Bank ceases to carry on banking business, with effect from the close of business on July 19, 2023.
The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank”.