Biznext india : The Reserve Bank of India has extended the period of directions for Kolkata based Kolikata Mahila Co-operative Bank Limited for another 6 months. However, the central bank has made it clear that these directions should not be constructed as cancellation of Banking licence.
“The Reserve Bank of India, in public interest, had issued Directions to Kolikata Mahila Co-operative Bank Limited, Kolkata, West Bengal in exercise of its powers vested in it 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 09, 2019 which was valid till January 09, 2020. The Reserve Bank of India has now, in public interest, further extended the Directions for a period of six months from January 10, 2020 to July 09, 2020. A copy of the Directive is displayed at bank’s premises for perusal of public” said a RBI release.
RBI further added that “The issue of the above Directions by the RBI should not per se be construed as cancellation of banking licence. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank of India may consider modifications of these Directions depending upon circumstances from time to time”.