RBI has extended restrictions on Konark Urban Co-operative Bank Ulhasnagar
The RBI has extended the restrictions on Konark Urban Co-operative Bank, Ulhasnagar. RBI had imposed restrictions on Bank in April 2024 due to poor financial condition of Bank.
RBI said depositors are entitled to insurance claims over deposits of up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation. The bank was started by businessmen from Ulhasnagar in 1998. It has over 10,000 customers.
Now RBI has extended restrictions on the bank. Read what RBI said.
What RBI said?
The Reserve Bank of India, vide directive CO.DOS.SED.No.S592/45-11-001/2024-25 dated April 23, 2024, had placed the Konark Urban Co-operative Bank Ltd., Ulhasnagar, under Directions from the close of business on April 23, 2024, for a period of six months. The validity of the directions was extended from time-to-time, the last being up to April 23, 2025.
It is hereby notified for the information of the public that, the Reserve Bank of India, 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, hereby directs that the aforesaid Directions shall continue to apply to the bank from close of business on April 23, 2025, till close of business on July 23, 2025, as per the directive DOR.MON/D-07/12.22.805/2025-26 dated April 21, 2025, subject to review.
All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated April 21, 2025, notifying the above extension is displayed at the bank’s premises for the perusal of public.
The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.
