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Sri Guru Raghavendra Bank: RBI extends validity period of Directions by 6 months


Money & Banking

The Bank has been under directions since January 10, 2020, in the interest of depositor protection

The Reserve Bank of India (RBI) has extended the validity of its Directions to Bengaluru-based Sri Guru Raghavendra Sahakara Bank Niyamitha for a further period of six months, from May 11, 2022 to November 10, 2022, subject to review.

The Bank has been under RBI Directions since January 10, 2020. RBI had brought the Bank under Directions in the interest of depositor protection.

The withdrawal limit for depositors of Sri Guru Raghavendra Sahakara Bank is capped at ₹1 lakh per depositor during the entire duration under RBI Directions.

Under the DIrections, the Bank cannot, without prior approval of RBI in writing, grant or renew any loans and advances, make any investment, incur any liability, including borrowal of funds and accept fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.

Meanwhile, RBI has extended the validity period of its Directions to Solapur-based The Laxmi Co-operative Bank for three months, from May 12, 2022 to August 11, 2022, subject to review. 

Published on May 11, 2022

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