What changed
For Primary (Urban) Co-operative Banks, the government issued a Gazette Notification exempting them from Section 31 requirements until December 31, 2020, replacing the earlier September 30 deadline. For State Co-operative Banks and Central Co-operative Banks, RBI used its power under the first proviso to Section 31 to extend the filing deadline by three months to December 31, 2020, since the Banking Regulation (Amendment) Act, 2020 hasn't been notified for them yet.
What it means for you
Co-operative banks now have until end-December 2020 to finalize and submit their audited financial statements for FY 2019-20, easing pandemic-related compliance pressure. Urban co-ops benefit from a statutory exemption, while state and central co-ops get a regulatory extension. Banks must still ensure timely submission to avoid non-compliance under the BR Act.
What you must do
- Submit three copies of accounts, balance sheet, and auditor's report to RBI (and NABARD for state/central co-ops) on or before December 31, 2020.
- For UCBs: rely on the Gazette Notification exemption; for StCBs/CCBs: note the extension under Section 31's first proviso.
- Coordinate with auditors to finalize FY 2019-20 financial statements well ahead of the new deadline.
- Maintain records of the extension notification for audit and regulatory review.
Who it affects
All Primary (Urban) Co-operative Banks, All State Co-operative Banks, All Central Co-operative Banks
Why was the deadline extended only for co-operative banks?
RBI cited difficulties faced by these banks in finalizing financial statements due to the COVID-19 pandemic. The government issued a specific exemption for urban co-ops, and RBI used its powers for state and central co-ops.
What happens if a co-operative bank misses the December 31, 2020 deadline?
The circular does not specify penalties, but non-submission would violate Section 31 of the BR Act, potentially attracting regulatory action. Banks should treat the deadline as final.
Does this extension apply to other types of banks?
No. This circular is specific to Primary (Urban) Co-operative Banks, State Co-operative Banks, and Central Co-operative Banks. Commercial banks and other entities are not covered.