The Reserve Bank of India has extended directions issued to The Suri Friends’ Union Co-operative Bank based in West Bengal. The directions will continue to apply to the bank for a further period of six months from July 07, 2016 to January 06, 2017, subject to review, reads a RBI press release.
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 four occasions up to July 6, 2016.
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, make any investment, incur any liability etc.
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 not per-se be construed as cancellation of banking licence by the Reserve Bank. 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, the release concludes