Hindu Cooperative Bank Limited, Pathankot, Punjab was placed under All-Inclusive Directions in the public interest under sub-section (1) of Section 35 A of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) read with Section 56 of the Banking Regulation Act, 1949 with effect from close of business on March 25, 2019 vide Directive DCBS.CO.BSD-IV/D-9/12.28.311/2018-19 dated March 13, 2019 (A). The Directions were partially modified vide Directive DCBR.CO.AID/No. D-03/12.28.311/2019-20 dated July 08, 2019 (B), and modified and extended up to March 24, 2020 vide DCBR.CO.AID/No. D-17/12.28.311/2019-20 dated September 23, 2019 (C). The said Directions were further modified vide Directive DOR.CO.AID.No.D-49/12.28.311/2019-20 dated January 09, 2020 (D).

Reserve Bank has been closely monitoring the situation. It must be noted that unlike in the case of commercial banks, the Reserve Bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank. Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the Reserve Bank of India, in consultation with various stakeholders and authorities, is working for revival of the bank. In order to take this forward, it is considered necessary to extend the aforesaid Directions for a further period of six months.

Accordingly, it is hereby notified vide Directive DOR.CO.AID.No.D-61/12.28.311/2019-20 dated March 13, 2020 (E) for the information of the public that the validity of the aforesaid Directive dated March 13, 2019, as modified from time to time, has been extended for a further period of six months from March 25, 2020 to September 24, 2020 subject to review. Other terms and conditions of the Directives under reference as modified from time to time shall remain unchanged.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2019-2020/2169