Press Release*
September 2012
Shri Y. C. Deveshwar nominated on RBI
Central Board
September 5, 2012
In exercise of the powers conferred by clause (c)
of sub-section (1) of Section 8 of the Reserve Bank of
India Act, 1934, the Central Government has nominated
Shri Y. C. Deveshwar, as a director on the Central Board
of Directors of the Reserve Bank of India for a period
of four years with effect from September 3, 2012.
Reserve Bank Cancels the licence of
Rajiv Gandhi Sahakari Bank Ltd., Latur,
Maharashtra
September 12, 2012
In view of the fact that Rajiv Gandhi Sahakari Bank
Ltd., Latur, Maharashtra (hereinafter referred to as ‘the
bank’) is not in a position to pay its present and future
depositors, the affairs of the bank are being conducted
in a manner detrimental to the interest of the depositors
and the financial position of the bank leaves no scope
for its revival, the Reserve Bank of India
(hereinafter
referred to as ‘RBI’) on August 30, 2012 delivered the
order to the bank cancelling its licence for conducting
banking business. Registrar of Co-operative Societies,
Pune has also been requested to issue an order for
winding up the bank and appoint liquidator for the
bank. It may be highlighted that on liquidation, every
depositor is entitled to repayment of his/her deposits
up to a monetary ceiling of `1,00,000/- (Rupees one
lakh only) from the Deposit Insurance and Credit
Guarantee Corporation (DICGC) under usual terms and
conditions.
The bank was granted a licence by RBI on December
15, 1997 under Section 22 of the Banking Regulation
Act, 1949 (As Applicable to Cooperative Societies)
(hereinafter referred to as ‘the B. R. Act’) to conduct banking business. As per the statutory inspection of
the bank conducted under Section 35 of the Banking
Regulation Act, 1949 (AACS) with reference to its
financial position as on September 30, 2004, its net
NPAs were assessed at 23.5 per cent, networth at
(-)`16.14 lakh, CRAR at (-)7.8 per cent and accumulated
losses at `21.41 lakh.
The statutory inspection of the bank conducted
under Section 35 of the B. R. Act with reference to
March 31, 2006 revealed that its financial position had
deteriorated further. The bank was issued operational
instructions under Section 36 (1) of the B. R. Act vide
RBI letter dated October 6, 2006 which, inter alia,
prohibited the bank from accepting fresh deposits,
allowing pre-mature withdrawal of term deposits and
sanctioning fresh loans and advances.
The statutory inspections of the bank conducted
under Section 35 of the B. R. Act with reference to its
financial position as on March 31, 2007 and March 31,
2008 did not show any significant improvement in the
financials of the bank.
The statutory inspection of the bank conducted
with reference to its financial position as on March 31,
2010 revealed deterioration in the financial position
with assessed net worth at (-)`22.85 lakh, CRAR at
(-)15.4 per cent, gross NPAs at 35.2 per cent of gross
advances, assessed loss at `58.32 lakh and deposit
erosion at 11.9 per cent. TAFCUB reviewed the findings
of the inspection report as on March 31, 2010 in its
meeting held on June 23, 2011 and recommended
supersession of the Board of Directors and imposition
of directions followed by issue of Show Cause Notice
(SCN) for cancellation of licence. Accordingly, directions
under Section 35A of the B. R. Act were imposed on the
bank vide Order dated August 2, 2011 which were
extended from time to time. Further, on the basis of
RBI requisition dated August 2, 2011 for supersession
of the Board, RCS vide his order dated August 16, 2011
superseded the board and appointed the administrative
board on August 16, 2011.
The latest statutory inspection of the bank with
reference to its position as on March 31, 2011 revealed
sharp deterioration in the financial position of the bank.
The real or exchangeable value of the paid-up capital
and reserves (net-worth) had deteriorated from
(-)`22.85 lakh as on March 31, 2010 to (-)`98.40 lakh as
on March 31, 2011 and thus the bank did not comply
with Sections 11(1) and 22(3) of B. R. Act. The CRAR of
the bank deteriorated from (-)15.4 per cent as on March
31, 2010 to (-)41.8 per cent as on March 31, 2011.
Assessed gross and net NPAs increased from `67.12
lakh (35.2 per cent) and `54.82 lakh (30.7 per cent) as
on March 31, 2010 to `148.92 lakh (99.0 per cent) and
`129.13 lakh (93.5 per cent) as on March 31, 2011. The
assessed losses increased from `58.32 lakh during 2009-
10 to `129.27 lakh during 2010-11 whereas assessed
accumulated losses of the bank increased from `68.68
lakh as on March 31, 2010 to `133.87 lakh as on March
31, 2011. The deposit erosion increased from 11.9 per
cent as on March 31, 2010 to 52.8 per cent as on March
31, 2011
Keeping in view the deterioration in the financial
position of the bank a Show Cause Notice (SCN) dated
May 17, 2012 was issued to the bank requiring it to
show cause as to why the licence granted to it under
Section 22 of the B. R. Act on December 15, 1997 to
carry on banking business should not be cancelled and
the bank be taken into liquidation. The bank’s reply
dated June 20, 2012 to the SCN was examined but was
not found to be satisfactory. Further, no concrete
proposal for merger/revival of the bank was received.
The bank does not comply with the provisions of
Sections 11(1), 18, 22 (3) (a), 22 (3) (b) and 24 of the B.
R. Act and is not in a position to pay its present and
future depositors. The affairs of the bank are being
conducted in a manner detrimental to the interest of
depositors. The financial position of the bank leaves
no scope for its revival and in all likelihood public
interest will be affected if the bank is allowed to carry
on its business any further. Therefore RBI took the
extreme measure of cancelling the licence of the bank
in the interest of bank’s depositors. With the
cancellation of licence and commencement of
liquidation proceedings, the process of paying the depositors of the Rajiv Gandhi Sahakari Bank Ltd., Latur
(Maharashtra) the amount insured as per the DICGC
Act, 1961 will be set in motion subject to the terms and
conditions of the Deposit Insurance Scheme.
Consequent to the cancellation of its licence, Rajiv
Gandhi Sahakari Bank Ltd., Latur (Maharashtra) is
prohibited from carrying on business of ‘banking’ as
defined in Section 5(b) of the Banking Regulation Act,
1949 (AACS).
For any clarifications, depositors may approach
Shri S. Thyagarajan, Deputy General Manager, Urban
Banks Department, Reserve Bank of India, Nagpur. His
contact details are as below:
Postal Address: Urban Banks Department, Reserve
Bank of India, Nagpur Regional Office, Additional Office
Building, East High Court Road, Nagpur- 440001;
Telephone Number: (0712) 2806829; Fax Number:
(0712) 2552896; Email:
Mid-Quarter Monetary Policy Review:
September 2012
September 17, 2012
Monetary and Liquidity Measures
On the basis of an assessment of the current
macroeconomic situation, it has been decided to:
-
reduce the cash reserve ratio (CRR) of
scheduled banks by 25 basis points from
4.75 per cent to 4.50 per cent of their net
demand and time liabilities (NDTL) effective
the fortnight beginning September 22,
2012. Consequently, around ` 170 billion of
primary liquidity will be injected into the
banking system; and
-
keep the policy repo rate under the liquidity
adjustment facility (LAF) unchanged at 8.0
per cent. Consequently, the reverse repo rate
under the LAF will remain unchanged at 7.0
per cent, and the marginal standing facility
(MSF) rate and the Bank Rate at 9.0 per cent.
Introduction
2. There have been several significant developments
since the Reserve Bank’s First Quarter Review of
Monetary Policy in July. Globally, as risks have risen,
both the European Central Bank (ECB) and the US Fed
have responded with liquidity measures intended
to calm financial markets and provide further
stimulus to economic activity. While these measures
have certainly mitigated short-term growth and
financial risks, they will also exert pressure on global
asset prices, and particularly, commodity prices.
Domestically, growth continues to be weak amidst
a negative investment climate; however, the recent
reform measures undertaken by the Government
have started to reverse sentiments. The Government
undertook long anticipated measures towards fiscal
consolidation by reducing fuel subsidies and selling
stakes in public enterprises. Further, steps taken
to increase foreign direct investment (FDI) should
contribute to both greater capital inflows and, over the
long run, higher productivity, particularly in the food
supply chain. Importantly, however, for the moment,
inflationary pressures, both at wholesale and retail
levels, are still strong.
3. In April, the Reserve Bank implemented a
frontloaded policy rate reduction of 50 basis points on
the expectations of fiscal policy support for inflation
management alongside supply-side initiatives for
addressing the deceleration of investment and
growth. As these expectations did not materialise
and inflation remained firmly above 7.5 per cent,
the Reserve Bank decided to pause in its policy
easing in the Mid-Quarter Review (MQR) of June
and in the First Quarter Review (FQR) of July. As
inflationary tendencies have persisted, the primary
focus of monetary policy remains the containment of
inflation and anchoring of inflation expectations. In
this context, the Government’s recent actions have
paved the way for a more favourable growth-inflation
dynamic by initiating a shift in expenditure away from
consumption (subsidies) and towards investment
(including through FDI). Of course, several challenges
remain, one of which is persistent inflation. But,
as policy actions to stimulate growth materialise monetary policy will reinforce the positive impact of
these actions while maintaining its focus on inflation
management. Only this will ensure that the economy
derives the maximum benefit from the recent, and
anticipated, fiscal and supply-side policy measures.
Global Economy
4. Global activity has been weakening in Q3 of 2012.
Merchandise trade slowed considerably with absolute
contractions in major economies. Global purchasing
managers’ indices (PMI) point to contraction in
manufacturing and only modest growth in services.
Persistent sovereign debt pressures amidst weakening
economic activity in the euro area pose significant
downside risks to the global economy. These concerns
have prompted the announcement of the programme
of outright monetary transactions (OMTs) in the
form of sovereign bond purchases by the ECB. The
US Fed announced the purchase of additional agency
mortgage-backed securities until labour market
conditions improve substantially, and extended
exceptional policy accommodation till mid-2015.
5. Growth in several major emerging and developing
economies (EDEs) is also moderating, with China’s
Q2 2012 growth slowing to its lowest rate in the past
three years. Slowing global demand has adversely
affected industrial activity and exports in these
economies. Additionally, drought conditions in major
grain-producing areas of the world and the possibility
of further hardening of international crude prices in
view of the fresh dose of quantitative easing impart
ubiquitous risks to overall global macroeconomic
prospects.
Domestic Economy
Growth
6. Economic activity picked up modestly in Q1 of
2012-13 in relation to the preceding quarter; but the
sluggish momentum of value added in Q1 was evident
across all sectors of the economy, and particularly in
industry. Lead indicators point to slack activity in Q2
as well. Industrial production rose by just 0.1 per cent
in July. In August, the manufacturing PMI fell to its
lowest level during 2012 so far, as a result of output disruptions due to power shortages and declining
export orders. The services PMI, however, picked up
in August on growth in new orders and employment.
With the progressive reduction in the rainfall
deficit,kharif sowing, though still below normal, has
improved. Reassuringly, the late rains have augmented
storage in reservoirs which should improve prospects
for the rabi crop, mitigating to some extent the
concerns about agricultural prospects.
Inflation
7. Headline WPI inflation (y-o-y) has remained
sticky at around 7.5 per cent throughout the current
financial year so far. At the disaggregated level, within
primary food articles, the easing of vegetable prices
in July-August was to a large extent offset by the
surge in prices of cereals and pulses. Demand-supply
imbalances in respect of protein-rich items persist. Fuel
price inflation picked up in August, largely reflecting
the upward revision in electricity prices. As welcome as
the recent hike in diesel prices/rationalisation of LPG
subsidy has been, the pass-through to administered
prices remains incomplete. International crude prices
are vulnerable to being driven up further by global
liquidity. Core inflation pressures remained firm with
non-food manufactured products inflation inching up
from 5.1 per cent in April to 5.6 per cent in August and
the momentum indicator remaining elevated. Even as
demand pressures moderate, supply constraints and
rupee depreciation are imparting pressures on prices,
rendering them sticky.
8. In terms of the new CPI, inflation (y-o-y)
remained broadly unchanged in July from June at
close to 10 per cent, held up by rising prices of food
items. Notwithstanding some easing in July, core
CPI inflation (CPI excluding food and fuel sub-group)
remains elevated.
9. While the recent upward revision in diesel prices
and rationalisation of subsidy for LPG is a significant
achievement, in the short-term, there will be pressures
on headline inflation. Over the medium-term, however,
it will strengthen macroeconomic fundamentals.
It is important to note that these revisions were
anticipated at the time of the April policy when a front-loaded repo rate reduction was undertaken.
Over the longer run, holding down subsidies to under
2 per cent of GDP as indicated in the Union Budget for
2012-13 is crucial to manage demand-side pressures
on inflation. Containing inflationary pressures and
lowering inflation expectations warrant maintaining
the momentum of recent policy actions to step up
investment, alleviate supply constraints, and improve
productivity.
Liquidity Conditions
10. Money supply (M3), bank credit and deposits have
moderated in relation to their indicative trajectories,
reflecting the slowing down of economic activity.
Against this backdrop, liquidity conditions have
remained comfortable since the FQR. However, going
forward, the wedge between deposit growth and credit
growth could widen on the back of the seasonal pickup
in credit demand in the second half of the year.
This, combined with outflows on account of advance
tax payments and the onset of festival-related currency
demand, could accentuate pressures on liquidity over
the next few weeks. In these conditions, appropriate
liquidity management assumes importance in order to
ensure that drawals under the Liquidity Adjustment
Facility (LAF) broadly remain within the indicative
target of +/- 1 percent of NDTL, thereby facilitating
monetary policy transmission and enabling adequate
flow of credit to the productive sectors of the economy.
External sector
11. While the trade deficit narrowed in the first five
months of 2012-13, the relatively large fall of exports
in July-August is indicative of risks to the current
account from the worsening global outlook. As regards
external financing, the moderation in FDI inflows
was partly compensated by a surge in non-resident
deposits and a renewal of FIIs flows in recent months.
Consequently, the rupee has been trading in a narrow
range since the FQR. Looking ahead, a moderation
in the trade deficit combined with increased inflows
in response to domestic policy developments could
ease pressures on the balance of payments. However,
risks from global factors, in terms of both capital
movements and oil prices will persist. Given these external risks, holding down the CAD to sustainable
levels will depend on durable fiscal consolidation
and, in particular, switching public expenditure from
subsidies to capital outlay that crowds in private
investment, thus preparing the ground for a revival of
growth.
Guidance
12. Since the FQR, while growth risks have increased,
inflation risks remain. Mitigating the growth risks and
taking the economy to a higher sustainable growth
trajectory requires concerted policy action across
a range of domains, a process to which last week’s
actions made a significant contribution. Monetary
policy also has an important role in supporting the
growth revival. However, in the current situation,
persistent inflationary pressures alongside risks
emerging from twin deficits – current account deficit
and fiscal deficit – constrain a stronger response of
monetary policy to growth risks. Accordingly, as this
process evolves, the stance of monetary policy will be
conditioned by careful and continuous monitoring of
the evolving growth-inflation dynamic, management
of liquidity conditions to ensure adequate flows of
credit to productive sectors and appropriate responses
to shocks emanating from external developments.
RBI Releases Draft Supplementary
Guidance on Treatment of Illiquid
Positions
September 17, 2012
The Reserve Bank of India today placed on its
website, Draft Supplementary Guidance on ‘Treatment
of Illiquid Positions’ for comments and feedback.
Comments/feedback on the draft supplementary
guidance may be sent latest by October 19, 2012 by mail
to the Chief General Manager-in-Charge, Reserve Bank
of India, Department of Banking Operations and
Development, Central Office, 12th floor, Central Office
Building, Shahid Bhagat Singh Marg, Mumbai-400001
or through e-mail:
Meeting of the FSDC Sub Committee,Mumbai, September 17, 2012
September 17, 2012
A meeting of the Sub Committee of the Financial
Stability and Development Council (FSDC) was held
today in Mumbai. Dr. D. Subbarao, Governor, Reserve
Bank of India, chaired the meeting. The meeting was
attended by Dr. Arvind Mayaram, Secretary, Department
of Economic Affairs (DEA); Shri D. K. Mittal, Secretary,
Department of Financial Services (DFS); Shri U. K.
Sinha, Chairman, Securities and Exchange Board of
India (SEBI); Shri J. Harinarayan, Chairman, Insurance
Regulatory and Development Authority (IRDA); Deputy
Governors of RBI, Dr. K.C. Chakrabarty, Dr. Subir
Gokarn, Shri Anand Sinha and Shri H. R. Khan, Shri G.
Gopalakrishna, Executive Director, RBI and other
officials.
The Sub-Committee reviewed the recent
developments in the global economy, specifically in the
Eurozone and the US. The concerns on slowing growth,
persistent inflationary pressures and pressures on the
external sector front were discussed. The risks to
stability of the domestic financial system including the
developments in the banking sector were briefly
reviewed.
The Sub Committee discussed issues related to
rising gold imports and its impact on the current
account deficit, introduction of financial instruments
to increase the productive use of gold held in the
economy, implications of the US Foreign Account Tax
Compliance Act, use of the Business Correspondent to
sell other financial products and the risks involved,
regulatory gaps in the shadow banking in the country,
etc.
RBI releases Time Series Data on Average
Daily Wage Rates in Rural India for Men
September 18, 2012
The Reserve Bank of India today released time
series data on monthly average daily wage rates for men
in rural India. This data series is collated from the basic
data collected by the Labour Bureau, Government of India and published in its monthly publication entitled‘Indian Labour Journal’.
Coverage
The data on wage rates are published by the Labour
Bureau on a regular monthly basis in its monthly
publication Indian Labour Journal. Wage rate data is
collected in respect of 11 agricultural and 7 nonagricultural
occupations entailing manual work under
the common framework of data collection of retail
prices for Consumer Price Index (CPI) for Agricultural
and Rural Labourers across 20 major states, namely,
Andhra Pradesh, Assam, Bihar, Gujarat, Haryana,
Himachal Pradesh, Jammu & Kashmir, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Manipur,
Meghalaya, Orissa, Punjab, Rajasthan, Tamil Nadu,
Tripura, Uttar Pradesh and West Bengal. The selected
occupations for which daily wage rates are collected
every month are: (a) Agricultural Occupations –
(i) ploughing, (ii) sowing, (iii) weeding, (iv) transplanting,
(v) harvesting, (vi) winnowing, (vii) threshing,
(viii) picking, (ix) herdsman, (x) well digging and
(xi) cane crushing; (b) Non-agricultural Occupations
– (xii) carpenter, (xiii) blacksmith, (xiv) cobbler,
(xv) mason, (xvi) tractor driver, (xvii) sweeper, and
(xviii) unskilled labour (un-specified).
Methodology
The average wage rates at all-India level are derived
by dividing the sum total of wages of all the 20 States
by the number of quotations collected by the Labour
Bureau. State-wise averages are estimated only for those
occupations where the number of quotations is five or
more. However, for working out all-India averages, all
state level quotations are taken into account to arrive
at total number of quotations at all-India level. At the
all-India level also, the number of quotations for
working out occupation-wise averages are restricted to
five or more. The missing values against various
occupations indicate that no wage rate was reported
during the reference month for various reasons, such
as: (i) either the activity connected with the occupation
was not undertaken in the State; or (ii) the activity was
out of season in the State; or (iii) the particular category
of workers were not engaged in that operation; or
(iv) the number of quotations received is less than five.
Access
The Reserve Bank’s time series data on wage rates
can be accessed from the Database of Indian Economy
(DBIE) link (http://dbie.rbi.org.in >> Statistics >>
Real Sector >> Prices and Wages >> Monthly) on the
RBI website and downloaded with classifications
according to time, states and occupations. Detailed
methodology for compilation of the wage rate is
available in a publication entitled ‘Wage Rates in Rural
India 2008-09’ brought out by the Labour Bureau in
2010 as also on the Labour Bureau’s website: http://labourbureau.gov.in.
The Rajasthan Urban Co-operative Bank
Limited, Jaipur - Penalised
September 18, 2012
The Reserve Bank of India has imposed a monetary
penalty of `1.00 lakh (Rupees One Lakh only) on the
The Rajasthan Urban Co-operative Bank Limited, Jaipur,
in exercise of the powers vested in it under the
provisions of Section 47A (1)(b) read with Section 46(4)
of the Banking Regulation Act, 1949 (As applicable to
Co-operative Societies), for violating the RBI directives/
guidelines on individual and group exposure ceiling,
IRAC norms and window-dressing
The Reserve Bank of India had issued a Show
Cause Notice to the bank in response to which the bank
submitted a written reply. After considering the facts
of the case, the bank’s reply and also personal
submissions in the matter, RBI came to the conclusion
that the violation was substantiated and warranted
imposition of penalty. Accordingly, it penalised the
bank.
The Rajlaxmi Mahila Urban Co-operative
Bank Limited, Jaipur - Penalised
September 18, 2012
The Reserve Bank of India has imposed a monetary
penalty of `1.00 lakh (Rupees One Lakh only) on the
The Rajlaxmi Mahila Urban Co-operative Bank Limited,
Jaipur, in exercise of the powers vested in it under the provisions of Section 47A (1)(b) read with Section 46(4)
of the Banking Regulation Act, 1949 (As applicable to
Co-operative Societies), for violating the RBI directives/
guidelines on unsecured advances, IRAC norms and
OBC charges.
The Reserve Bank of India had issued a Show Cause
Notice to the bank in response to which the bank
submitted a written reply. After considering the facts
of the case, the bank’s reply and also personal
submissions in the matter, RBI came to the conclusion
that the violation was substantiated and warranted
imposition of penalty. Accordingly, it penalised the
bank.
The Dahod Mercantile Co-operative
Bank Ltd., Dist. Dahod, Gujarat –
Penalised
September 20, 2012
The Reserve Bank of India has imposed a monetary
penalty of `1.00 lakh (Rupees One Lakh only) on the
The Dahod Mercantile Co-operative Bank Ltd., Dist.
Dahod, in exercise of the powers vested in it under the
provisions of Section 47A (1)(b) read with Section 46(4)
of the Banking Regulation Act, 1949 (As applicable to
Co-operative Societies), for violation of Reserve Bank
of India directives on donation.
The Reserve Bank of India had issued a Show
Cause Notice to the bank in response to which the bank
submitted a written reply. After considering the facts
of the case, the bank’s reply and also personal
submissions in the matter, RBI came to the conclusion
that the violation was substantiated and warranted
imposition of penalty.
The Talod Nagarik Sahakari Bank Ltd.,
Talod, Dist. Sabarkantha, Gujarat -
Penalised
September 24, 2012
The Reserve Bank of India has imposed a monetary
penalty of `5.00 lakh (Rupees five Lakh only) on the
The Talod Nagarik Sahakari Bank Ltd., Talod, Dist.
Sabarkantha (Gujarat), in exercise of the powers vested in it under the provisions of Section 47A (1)(b) read
with Section 46(4) of the Banking Regulation Act, 1949
(As applicable to Co-operative Societies), for violation
of RBI instructions relating to declaration/disbursal of
dividend to the shareholders in violation of operational
instructions dated March 25, 2011.
The Reserve Bank of India had issued a Show
Cause Notice to the bank in response to which the bank
submitted a written reply. After considering the facts
of the case, the bank’s reply and also personal
submissions in the matter, RBI came to the conclusion
that the violation was substantiated and warranted
imposition of penalty.
Investment by FIIs under PIS : GSS
Infotech Limited (GSS America Infotech
Limited)
September 25, 2012
The Reserve Bank of India has today notified
that the aggregate net purchases of equity shares in GSS
Infotech Limited (GSS America Infotech Limited) by
Foreign Institutional Investors (FIIs) in primary/secondary
markets under Portfolio Investment Scheme (PIS)
have reached the trigger limit. Therefore, further purchases
of equity shares of this company would be allowed
only after obtaining prior approval of the Reserve
Bank of India.
Indicative Quantum of Market
Borrowings by State Governments for
the Quarter October- December 2012
September 28, 2012
Reserve Bank of India, in consultation with the
State Governments, announces that the indicative
quantum of total market borrowings by the State
Governments and the Union Territory of Puducherry,
for the quarter October-December 2012, is expected to
be in the range of `55,000 crore to `60,000 crore. The
amount will be raised through auction of State
Development Loans (SDLs) conducted generally on
alternate Tuesdays. RBI would endeavour to conduct
the auctions in a calibrated manner and distribute the borrowings evenly throughout the quarter. The actual
amount of borrowings would be intimated by way of
press release two/three days prior to the actual auction
day and would depend on the requirement of the State
Governments, approval from the Government of India
under Article 293(3) of the Constitution of India and
the market conditions.
The Bhuj Mercantile Co-operative Bank
Ltd., Ahmedabad
September 28, 2012
In exercise of the powers vested under Sub-Section
(1) of Section 35A of Banking Regulation Act, 1949 (AACS), directions were imposed by the Reserve Bank
of India, in the interest of public, on The Bhuj
Mercantile Co-operative Bank Ltd., Ahmedabad from
the close of business as on April 02, 2012. The directions
were modified on May 18, 2012.The period of directions
imposed on the bank has since been extended for a
further period of six months up to April 02, 2013 vide
a directive dated September 21, 2012 in exercise of the
powers vested under sub-Section (1) of Section 35A of
Banking Regulation Act, 1949 (AACS), subject to review.
The modified directive is displayed on the bank’s
premises for interested members of the public to
peruse.
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