This week the RBI has extended the Directions on five urban cooperative banks namely Lucknow based Indian Mercantile Co-op Bank, West Bengal based Suri Friends’ Union Co-op Bank, National Urban Co-op Bank, Bahraich, United India Co-op Bank, Bijnor and Saibaba Janata Sahakari Bank, Latur.
The Reserve Bank of India has extended the directions issued to the Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P) for a period of three (03) months from January 28, 2023 to April 27, 2023, subject to review. The bank has been under direction since January 28, 2022.
The Reserve Bank of India has extended the directions issued to the Suri Friends’ Union Co-operative Bank Limited, Suri (West Bengal) for a period of three (03) months from January 23, 2023 to April 22, 2023, subject to review. The bank has been under direction from the close of business of July 22, 2022.
Similarly, the RBI has extended the directions issued to the National Urban Co-operative Bank Ltd., Bahraich (U.P.) for a period of three (03) months from January 23, 2023 to April 22, 2023, subject to review. The bank has been under direction from the close of business of July 22, 2022
Bijnor based United India Co-operative Bank was another UCB for which the RBI extended the Direction. In the release it said the Reserve Bank of India (RBI) has extended the directions issued to United India Co-operative Bank Limited, Nagina, Bijnor (U.P.) for a period of three (03) months from January 23, 2023 to April 22, 2023, subject to review. The bank has been under direction from the close of business of July 22, 2022.
The fourth bank for which the Direction was extended was Latur based Saibaba Janata Sahakari Bank Limited. RBI had first issued Directions to Saibaba Janata Sahakari Bank Limited, dated July 21, 2022 for a period of six months up to January 22, 2023.
In a release the RBI says that the Directive dated July 21, 2022, issued to Saibaba Janata Sahakari Bank Limited, Latur, Maharashtra, shall continue to apply to the bank for a further period of three months from January 23, 2023 to April 22, 2023, subject to review.
In cases of all the four banks RBI says that all other terms and conditions of the Directives under reference shall remain unchanged.
It also says that a copy of the directive order be displayed at the bank’s premises for the perusal of the public. The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI.
The Reserve Bank may consider modifications of these Directions depending upon circumstances, it adds.