RBI withdraws all-inclusive directions on Hindu Cooperative Bank

The Reserve Bank of India (RBI) on October 14 withdrew its all-inclusive directions on Pathankot-based Hindu Cooperative Bank, the central bank said in a release.

The RBI said on being satisfied and in public interest it has withdrawn the all-inclusive directions with effect from close of business on October 14, 2021.

The bank in Punjab was placed under all-inclusive directions on close of business on March 25, 2019, which was later extended up to March 24, 2020, and further extended till October 24, 2021.

The RBI had said then that it has been closely monitoring the situation and 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, the RBI had said.

Under all-inclusive directions, the RBI restricts the bank from discharging its liabilities except as permitted by the central bank.