Case Brief
What Happened
The Reserve Bank of India extended the validity of its existing directions issued to Vasantdada Nagari Sahakari Bank Ltd., Dist. Osmanabad, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The directions, first issued from the close of business on November 13, 2017 and modified from time to time, were previously valid up to December 31, 2020 and are now continued from January 1, 2021 to March 31, 2021, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also clarified that the directions should not be construed as cancellation of banking licence, and that the bank may continue banking business with restrictions until its financial position improves.