Case Brief
What Happened
The Reserve Bank of India extended the period of its earlier directions against Shivam Sahakari Bank Ltd., Ichalkaranji, Dist. Kolhapur, Maharashtra. The bank had been placed under directions from the close of business on May 19, 2018, and the March 30, 2020 directive under Section 35A of the Banking Regulation Act, 1949 read with Section 56 continued those directions till May 31, 2020, subject to review. The release does not describe any new penalty or withdrawal; it is a continuation of the existing restrictions, and RBI also stated that the extension should not be construed as satisfaction with the bank’s financial position.