Case Brief
What Happened
The Reserve Bank of India has further extended the Section 35A directions applicable to Vasantdada Nagari Sahakari Bank Ltd, Osmanabad, Maharashtra. These directions, originally issued from the close of business on November 13, 2017, are now extended from August 01, 2020 to September 30, 2020, subject to review. The release says the directions impose restrictions and/or ceilings on withdrawal and acceptance of deposits, while clarifying that this should not be construed as cancellation of the bank’s licence and that the bank may continue banking business with restrictions until its financial position improves.