Kanpur: The Reserve Bank of India has extended curbs on People's Co-operative Bank Limited, Kanpur, for three months from September 11 to December 10, this year.The bank has been under restrictions since June 10, 2020, through the directives issued under Section 35A of the Banking Regulation Act, 1949 (AACS), said the news.
The validity of the directive, which was last extended up to September 10, 2021 has further been extended for a period of three months from September 11, 2021 to December 10, 2021 vide directive DOR.MON.D-35/12.28.059/2021-22 dated September 8, 2021 subject to review, said an RBI statement on Saturday.
Section 35A of the Banking Regulation Act, 1949 gives the central bank power to give directions to banks and can take action, to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or i manner prejudicial to the interests of the banking company.
According to the directives, the Kanpur-based co-operative bank has been restricted from granting fresh loans and accepting deposits for six months without prior approval of the RBI, due to its weak financial position.
In particular, no amount of the total balance across all savings bank or current account or any other account can be withdrawn by the depositor, the RBI had said in its statement on June 11, 2020, when it imposed the restrictions.
