Case Brief
What Happened
The Reserve Bank of India had already placed Vasantdada Nagari Sahakari Bank Ltd, Osmanabad, Maharashtra under directions in public interest under Section 35A of the Banking Regulation Act, 1949 (AACS) from the close of business on November 13, 2017. The present release announces a further extension of those directions for three and a half months, from October 14, 2019 to January 31, 2020, subject to review. The directions continue to impose restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI states that the bank may continue to undertake banking business with restrictions and that the directions are not, by themselves, a cancellation of the banking licence.