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

Direction period extended: Reserve Bank of India (RBI) has extended 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, se measures were last extended until April 08, 2024.

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

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

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