The Reserve Bank of India has extended directions issued to the Suri Friends’ Union Co-operative Bank based in Suri, West Bengal. The directions will continue to apply to the bank for a further period of six months from July 07, 2015 to January 06, 2016.
The Reserve Bank had initially placed the bank under directions for six months w.e.f April 07, 2014 due to its very precarious financial position and the validity of which was subsequently extended on two occasions up to July 6, 2015.
According to the Reserve Bank’s directions, the Suri Friends’ Union Co-operative Bank Ltd. cannot, without the prior approval in writing from the Reserve Bank of India, grant or renew any loans and advances. There are hosts of other restrictions.
A copy of the directions is also displayed on the bank’s premises for perusal by interested members of public. The issue of the directions by the Reserve Bank should per se not be construed as cancellation of banking licence by the Reserve Bank, clarifies an RBI release.