Case Brief
What Happened
RBI has extended the directions previously issued to Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, Dist. Amravati, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The extension runs for six months from October 18, 2019 to April 17, 2020, subject to review. The directions continue to impose restrictions and ceilings on withdrawal and acceptance of deposits. RBI notes that the bank is not being put into liquidation or licence cancellation; it may continue to undertake banking business, but only within the imposed restrictions until its financial position improves.