Case Brief
What Happened
The Reserve Bank of India has further extended the existing Directions imposed on Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, Distt. Amravati, Maharashtra under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56. These directions, first issued from the close of business on January 17, 2019, had already been extended up to June 17, 2020 and are now extended for another two months up to August 17, 2020, subject to review. The restrictions include ceilings on withdrawal and acceptance of deposits. RBI notes that the directions are not to be construed as cancellation of the bank’s licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.