RBI extended period of direction on Ramgarhia Co-operative Bank by 3 months

Direction period extended: The Reserve Bank of India (RBI) has extended the period of directions imposed on Ramgarhia Co-operative Bank in New Delhi. Initially placed under Directions from July 08, 2022, for a period of six months, these measures were last extended until April 08, 2024.

Now, exercising its authority under Section 35A read with Section 56 of the Banking Regulation Act, 1949, the RBI has directed that these Directions will continue to apply to the bank for an additional three-month period, from April 08, 2024, to July 08, 2024. 

It's crucial to understand that the extension of Directions does not imply the cancellation of the banking license by the RBI. Instead, it indicates that the bank will continue to operate with restrictions until its financial position improves. 

This decision highlights the RBI's commitment to ensuring the stability and integrity of the banking sector while providing an opportunity for the bank to rectify its financial situation.