Directions under Section 35 A of the Banking Regulation Act, 1949 (AACS) – Hindu Cooperative Bank Ltd., Pathankot, Punjab – Extension of Period

IAS Prelims 2023

Reserve Bank of India, in the public interest, had issued Directions to in exercise of 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 March 25, 2019. These Directions were modified from time to time, the validity of which was last extended up to September 24, 2020. These Directives shall continue to apply to the bank for a further period of six months from September 25, 2020 to March 24, 2021, subject to review. A copy of the Directive dated September 18, 2020 notifying the extension is displayed at the bank’s premises for perusal of public. Reserve Bank of India may consider modifications in the Directions depending upon the circumstances. The issue of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India. The bank will be able to undertake banking business with restrictions till its financial position improves.

Chief General Manager

Press Release by RBI