Case Brief
What Happened
The Reserve Bank of India, by directive dated February 16, 2017, extended the directions issued to Rupee Co-operative Bank Ltd., Pune, Maharashtra from February 22, 2017 to August 21, 2017, subject to review. The directions were originally imposed under Section 35A of the Banking Regulation Act, 1949 read with Section 56, and had been extended repeatedly before this release. RBI clarified that the issuance of directions should not be construed as cancellation of the banking licence, and that the bank would continue to undertake banking business with restrictions until its financial position improves.