Case Brief
What Happened
Reserve Bank of India has extended the existing directions issued to Dr. Shivajirao Patil Nilangekar Urban Co-operative Bank Ltd., Nilanga, District Latur, Maharashtra, under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56. The earlier directions, first issued from the close of business on February 16, 2019, were extended for a further two months up to June 14, 2020, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI clarified that the directions should not be construed as cancellation of the banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.