Case Brief
What Happened
RBI, through a directive dated November 27, 2018, extended the directions already in force against Rupee Co-operative Bank Ltd., Pune, Maharashtra. The extension runs from December 1, 2018 to February 28, 2019, subject to review. The release notes that the directions were imposed under Section 35A of the Banking Regulation Act, 1949 read with Section 56, and clarifies that the action is not, by itself, a cancellation of banking licence. The bank may continue banking business, but only with restrictions until its financial position improves.