In a press release sent by RBI it has extended the Direction on Hindu Cooperative Bank Limited, Pathankot, Punjab on the pretext of putting in efforts to revive the UCB.
The RBI says “It must be noted that unlike in the case of commercial banks, the Reserve Bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank. Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the Reserve Bank of India, in consultation with various stakeholders and authorities, is working for revival of the bank.”
The UCB was placed under Direction with effect from close of business on March 25, 2019.
The Directions were partially modified from time to time.
Reserve Bank says it has been closely monitoring the situation. In order to take this forward, it is considered necessary to extend the aforesaid Directions for a further period of six months till September 24, 2020 subject to review, says the release.
Other terms and conditions of the Directives under reference as modified from time to time shall remain unchanged, it adds.
