Case Brief
What Happened
The Reserve Bank of India has further extended the Section 35A directions previously issued to Vasantdada Nagari Sahakari Bank Ltd, Osmanabad, Maharashtra. The extension runs from June 01, 2020 to July 31, 2020, subject to review. These directions place restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also states that the bank will continue to undertake banking business with restrictions until its financial position improves, and that the directions are not to be construed as cancellation of the banking licence.