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 earlier directions had been in force from the close of business on May 19, 2018; this release extends them for six months from March 18, 2020 to September 17, 2020, subject to review. RBI says the bank will continue to carry on banking business with restrictions until its financial position improves, and clarifies that the directions should not be construed as cancellation of the banking licence.