RBI extends directions for three Maharashtra urban cooperative banks

The Reserve Bank of India (RBI) has on July 30 extended its directions for three urban cooperative banks – the Vasantdada Nagari Sahakari Bank, the Kapol Cooperative Bank and the Maratha Sahakari Bank – all from Maharashtra.

The central bank in separate notifications for the latter two, said that extension should not “per-se be construed to imply that it is satisfied of substantive improvement in the financial position of the aforementioned banks,” the Hindu BusinessLine reported.

For the Vasantdada Nagari Sahakari Bank in Osmanabad, which closed in November 2017, the RBI has extended period of directions by two months to September 30, 2020 from August 1, 2020 – subject to review.

The central bank clarified that this 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.”

For The Kapol Cooperative Bank in Mumbai, which closed in March 2017, the RBI has extended validity of directions by six months till January 31, 2021 from August 1, 2020. This will be subject to review.

For the Maratha Sahakari Bank in Mumbai, which has been under RBI directions since its closure in August 2016, the period of directions has been extended for five months from August 1, 2020 till December 31, 2020.