Money & Banking

RBI extends directions for three Maharashtra urban co-op banks

Our Bureau Mumbai | Updated on July 30, 2020 Published on July 30, 2020

The Reserve Bank of India on Thursday extended its directions for three Maharashtra-based urban co-operative banks — Maratha Sahakari Bank, The Kapol Cooperative Bank and Vasantdada Nagari Sahakari Bank.

In the case of Maratha Sahakari Bank (Mumbai), the RBI said the validity of its directions has been extended for a further period of five months from August 1 to December 31. The bank has been under RBI directions from the close of business on August 31, 2016.

In the case of The Kapol Cooperative Bank (Mumbai), the RBI said the validity of its directions has been extended for a further period of six months from August1 to January 31, 2021, subject to review. The bank has been under RBI directions from the close of business on March 30, 2017.

RBI, in separate statements, said the aforesaid extension and/or modification by it should not per-se be construed to imply that it is satisfied of substantive improvement in the financial position of the aforementioned banks.

In the case of Vasantdada Nagari Sahakari Bank (Osmanabad), the RBI said the validity of its directions has been extended for a further period of two months from August1 to September 30 subject to review. The bank has been under RBI directions from the close of business on November 13, 2017.

According to RBI, the issue of Directions to Vasantdada Nagari Sahakari Bank should not per se be construed as cancellation of banking license by it. The bank will continue to undertake banking business with restrictions till its financial position improves, the central bank added.

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Published on July 30, 2020
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