The Reserve Bank of India has extended Directions to Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru, Karnataka for a further period of six months from May 11, 2022 to November 10, 2022.
The Bangalore based UCB was first placed under direction on January 02, 2020, the validity of which was extended from time to time and the last one up to May 10, 2022.
Other terms and conditions of the Directives under reference shall remain unchanged, clarified the RBI.
Another UCB which failed to get any relief was Solapur based Laxmi Co-operative Bank. “The directions on the bank shall continue to apply for a further period of three months from May 12, 2022 to August 11, 2022, subject to review”, said RBI.
The UCB was placed under the restriction from the close of business on November 12, 2021. “The issue of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India. The bank will continue to undertake banking business with restrictions till its financial position improves”, clarified the RBI.
In the case of Sri Guru Raghavendra Sahakara Bank Niyamitha, Administrator, R Ashokan was appointed by the RBI to look into financial irregularities.