Case Brief
What Happened
The Reserve Bank of India extended the existing directions issued to Padmashri Dr. Vitthalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The extension runs from November 19, 2018 to May 18, 2019, continuing the earlier restrictions that had been in force since May 19, 2018. RBI notes that the bank will continue to undertake banking business with restrictions until its financial position improves, and the directions may be modified depending on circumstances. The release expressly says the directions should not be construed as cancellation of the banking licence.