Reserve Bank of India has, in press release stated that the Directions on the Suri Friends’ Union Co-operative Bank Limited based in Suri in West Bengal would continue for a period of next six months.
The UCB was put under Direction first in March, 2014 which was extended several times. It was last extended vide Directive dated December 30, 2016 up to July 06, 2017. Now it shall continue to apply to the bank for a further period of six months from July 07, 2017 to January 06, 2018, subject to review, the release reads.
Other terms and conditions of the directive under reference as modified from time to time shall remain unchanged, says RBI.
“The issue the Directions by the RBI should not per se be construed as cancellation of banking licence 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”, it clarifies.