The Reserve Bank of India (RBI) has extended the restrictions issued on the People’s Co-operative Bank Limited, Kanpur (Uttar Pradesh) for a further period of three months from June 11, 2021 to September 10, 2021.
The regulator said under Section 35A of the Banking Regulation Act, 1949 (AACS), the central bank has issued a directive against the bank.
The central bank stated, “The modification of the directive by the Reserve Bank should per se not be construed as improvement or deterioration in the financial position of the bank. The Reserve Bank may consider modifications of the directive depending upon circumstances.”
The validity of the directive, which was last extended up to June 10, 2021 has further been extended for a period of three months that is September 10, 2021.
As per section 35A, the RBI can issue a directive “to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company".