Ramgarhia Co-op Bank continues to be in trouble

The Reserve Bank of India extended the period of directions on New Delhi based Ramgarhia Cooperative Bank for a further period of three months.

Issuing a press release in this connection, the RBI said, “The Reserve Bank of India, in exercise of the powers vested in it under subsection (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank further for a period of three months from close of business on October 08, 2024 to close of business on January 08, 2025, subject to review, it said.

“The extension of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India”, it added.

The bank will continue to undertake banking business with restrictions till its financial position improves.

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