Case Brief
What Happened
The Reserve Bank of India has 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 for four months from May 19, 2019 to September 17, 2019, subject to review. RBI states that the bank will continue to undertake banking business with restrictions until its financial position improves, and clarifies that the issue of directions should not be construed as cancellation of the banking licence.