Case Brief
What Happened
The Reserve Bank of India said that the existing directions issued in public interest 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) will continue to apply from June 18, 2021 to September 17, 2021, subject to review. These directions had originally been issued from the close of business on May 19, 2018 and had been modified and extended from time to time, with the last extension ending on June 17, 2021. The restrictions include ceilings on withdrawal and acceptance of deposits. RBI also clarified that the directions should not be construed as a cancellation of the bank’s licence and that the bank may continue banking business with restrictions.