Case Brief
What Happened
Reserve Bank of India further extended the 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 original directions were effective from the close of business on February 16, 2019 and had been extended from time to time up to June 14, 2020. The latest order extends the same restrictions for two months up to August 14, 2020, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also clarified that the issuance of these directions should not be construed as cancellation of the bank's licence, and that the bank may continue to undertake banking business with restrictions until its financial position improves.