Case Brief
What Happened
The Reserve Bank of India has further extended its existing directions under Section 35A of the Banking Regulation Act, 1949 (AACS) against Vasantdada Nagari Sahakari Bank Ltd., Osmanabad, Maharashtra. The extension runs from March 14, 2019 to June 13, 2019. The directions continue to place restrictions and ceilings on withdrawal and acceptance of deposits. RBI stated that the measure is not a cancellation of banking licence and that the bank may continue banking business, but only subject to these restrictions until its financial position improves.