Case Brief
The Reserve Bank of India has extended the existing All Inclusive Directions imposed on Shimsha Sahakara Bank Niyamitha, Maddur, Mandya District, under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The extension keeps the earlier restrictions unchanged and pushes their validity from August 24, 2024 to the close of business on November 24, 2024, subject to review. RBI said the bank’s condition continues to be precarious, citing negative CRAR, negative net worth and substantial deposit erosion. The release also notes that the bank’s banking licence had been cancelled earlier on July 05, 2024, but that order was stayed by the Karnataka High Court on July 25, 2024.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Maddur, Mandya District