West Bengal-based United Cooperative Bank will continue to be under RBI’s radar

West Bengal-based United Cooperative Bank will continue to be under RBI’s radar

FPJ Web DeskUpdated: Monday, April 19, 2021, 02:59 PM IST
article-image
West Bengal-based United Cooperative Bank will continue to be under RBI’s radar |

Banking regulator Reserve Bank of India has issued a direction suggesting that West Bengal-based United Co-operative Bank Limited will continue to be under its close watch. From July 18, 2018, the cooperative bank had been directed to follow RBI”s direction in the case of operations.

In 2018, RBI directed the cooperative bank to grant or renew any loans and advances, make any investment, incur any liability including the borrowing of funds, etc, only after approval from RBI. “Reserve Bank of India has now, in public interest, further extended the directions for a period of two months from April 19, 2021 to June 18, 2021," stated the RBI.

Under sub-section (1) of section 35 A read with section 56 of the Banking Regulation Act, 1949 (AACS) from the close of business on July 18, 2018, the restrictions were imposed by the regulator. This direction was modified from time to time which was last extended up to April 18, 2021.

The regulator stated details of this direction is displayed at the bank’s premises.

The regulator went on to state the above-given directions by RBI should not be construed as a cancellation of banking licence. The bank will continue to undertake banking business with restrictions till its financial position improves. Reserve Bank of India may consider modifications of these directions depending upon circumstances from time to time.

RECENT STORIES

Indian Equity Indices Open Flat As Markets Await Fresh Triggers To Break Out Of Consolidation Phase

Indian Equity Indices Open Flat As Markets Await Fresh Triggers To Break Out Of Consolidation Phase

Google Confirms Pixel 10 Series Launch On August 20: Here’s What You Can Expect

Google Confirms Pixel 10 Series Launch On August 20: Here’s What You Can Expect

India’s Festive Season To Create Over 2.16 Lakh Jobs In H2 2025, Driven B Retail, E-commerce And...

India’s Festive Season To Create Over 2.16 Lakh Jobs In H2 2025, Driven B Retail, E-commerce And...

Gold Drops ₹500 Amid Stockist Selling, Silver Falls ₹1,000 Despite Global Gains

Gold Drops ₹500 Amid Stockist Selling, Silver Falls ₹1,000 Despite Global Gains

Tech Mahindra Q1 FY26 Net Profit Rises 33.9% To ₹1,140.6 Crore; Revenue Grows Marginally To...

Tech Mahindra Q1 FY26 Net Profit Rises 33.9% To ₹1,140.6 Crore; Revenue Grows Marginally To...