Case Brief
What Happened
The Reserve Bank of India has extended the period of its existing directions issued to Padmashri Dr. Vitthalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The original directions, issued from the close of business on May 19, 2018 and modified from time to time, were last valid up to March 17, 2021. They now continue from March 18, 2021 to June 17, 2021, subject to review. The directions impose restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI clarifies that this should not be treated as cancellation of the banking licence, and the bank may continue to carry on banking business with restrictions until its financial position improves.