Case Brief
What Happened
RBI has extended the applicability of its earlier directions to Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, Distt. Amravati, Maharashtra. The directions, first issued from the close of business on January 17, 2019 under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), were last valid up to April 17, 2021 and will now continue from April 18, 2021 to May 17, 2021, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI clarifies that the directions are not to be construed as cancellation of the bank’s licence and that the bank will continue to undertake banking business with restrictions while its financial position improves.