Case Brief
What Happened
The Reserve Bank of India extended the Section 35A read with Section 56 directions already in force against Independence Co-operative Bank Ltd., Nashik, Maharashtra. The earlier directions, issued from the close of business on February 09, 2021 and valid up to August 10, 2021, were continued for a further three months from August 11, 2021 to November 10, 2021, subject to review. The directions impose restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI clarified that this is not a cancellation of the bank’s licence and that the bank may continue banking business with restrictions until its financial position improves.