Case Brief
What Happened
The Reserve Bank of India extended the existing directions issued to Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, Distt. Amravati, Maharashtra, under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The directions, originally effective from the close of business on January 17, 2019 and previously extended up to October 17, 2020, were continued for a further period of three months from October 18, 2020 to January 17, 2021, subject to review. The directions stipulate restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also noted that the issuance of directions should not per se be construed as cancellation of the bank’s banking licence, and that the bank will continue to undertake banking business with restrictions until its financial position improves.