Case Brief
What Happened
The Reserve Bank of India extended the period of its existing directions on Shivam Sahakari Bank Ltd., Ichalkaranji, Dist. Kolhapur, Maharashtra. The bank had originally been placed under directions from the close of business on May 19, 2018, and the May 21, 2020 directive states that the same directive shall continue to apply till July 31, 2020, subject to review, under Section 35A of the Banking Regulation Act, 1949 read with Section 56. The release also clarifies that the extension should not be construed as RBI being satisfied with the bank’s financial position.