Case Brief
What Happened
The Reserve Bank of India extended the validity of its directions issued to Dr. Shivajirao Patil Nilangekar Urban Co-operative Bank Ltd., Nilanga, Distt. Latur, Maharashtra under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The directions had been in force since February 16, 2019, were modified over time, and were last extended up to December 14, 2020. Under this release, they continue for a further three months from December 15, 2020 to March 14, 2021, subject to review. The directions impose restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI states that the directions are not a cancellation of banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.