RBI extends action period on Sikar Urban Co-operative Bank

Case Brief

The Reserve Bank of India notified an extension of the existing Directions issued to Sikar Urban Co-operative Bank Ltd., Sikar, Rajasthan under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 of the Act. The directions, originally issued on October 26, 2018 and previously extended up to November 9, 2019, were continued unchanged for a further period of six months from November 10, 2019 to May 9, 2020, subject to review. RBI clarified that this should not be construed as cancellation of the bank's licence and that the bank would continue to undertake banking business with restrictions until its financial position improves.