Case Brief
What Happened
The Reserve Bank of India, acting under Section 35A of the Banking Regulation Act, 1949 (AACS), extended the existing directions imposed on Vasantdada Nagari Sahakari Bank Ltd., Osmanabad, Maharashtra. The extension runs from April 01, 2020 to May 31, 2020, subject to review. The directions continue to restrict and/or cap withdrawals and acceptance of deposits. RBI states that the order is not a cancellation of banking licence and that the bank may continue to undertake banking business with restrictions until its financial position improves.