Case Brief
What Happened
The Reserve Bank of India has extended the existing Directions issued to Hindu Cooperative Bank Limited, Pathankot, Punjab, under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). These directions, first issued from the close of business on March 25, 2019 and already extended several times, were last valid up to June 24, 2021. RBI has now continued them for a further period of three months, from June 25, 2021 to September 24, 2021, subject to review. The release clarifies that this is not a cancellation of the bank’s licence and that the bank may continue to undertake banking business, but only under restrictions until its financial position improves.