MUMBAI: The Reserve Bank of India (RBI) has extended curbs on People's Co-operative Bank Limited, Kanpur, for an additional period of 3 months from Sept 11 to December 10. The Corporative bank has been under restrictions since June 10, 2020, through the directives issued under Section 35A of the Banking Regulation Act, 1949 (AACS).

As per the directives, the Kanpur-based co-operative bank has been barred from granting fresh loans and accepting deposits for six months without prior approval of the RBI, due to its weak financial position.

Section 35A of the Banking Regulation Act, 1949 gives the RBI power to give directions to banks and can take action, to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company.

"In particular, no amount of the total balance across all savings bank or current account or any other account of a depositor may be allowed to be withdrawn," the RBI had said in its statement on June 11, 2020, when it had imposed the restrictions.

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