RBI extends the Period for Submission of Returns for Urban Co-operative Banks

RBI extends the Period for Submission of Returns  for Urban Co-operative Banks for

Considering the difficulties faced by Urban Co-operative Banks (UCBs) in finalizing the financial statements amidst the COVID-19 pandemic, the Reserve Bank of India (RBI) through its notification dated 13th October 2020 has issued a circular thereby extending the period prescribed for submission of returns under Section 31 (read with Section 56) of the Banking Regulation Act, 1949 [as amended by the Banking Regulation (Amendment) Ordinance, 2020] for the financial year ended on March 31, 2020 by another three months, till September 30, 2020.

The Government of India, on the recommendation of the Reserve Bank, issued a Gazette Notification dated September 29, 2020 declaring that the provisions of Section 31 read with clause (t) of Section 56 of the Act shall not apply to Primary Co-operative Banks till December 31, 2020. Accordingly, all UCBs shall ensure submission of the aforesaid returns to the Reserve Bank on or before December 31, 2020.

Since the Banking Regulation (Amendment) Act, 2020 has not been notified for the State Co-operative Banks and Central Co-operative Banks as yet, they are required to furnish three copies of accounts and balance sheet together with auditor's report as returns to the Reserve Bank and the National Bank (NABARD), in terms of Section 31 read with Section 56 (t) of Banking Regulation Act, within six months from the end of the period to which they refer, i.e., by September 30, 2020 for the financial year 2019-20.

Accordingly, all State Co-operative Banks and Central Co-operative Banks have been directed to ensure submission of the aforesaid returns to the Reserve Bank and NABARD on or before December 31, 2020.