Case Brief
What Happened
The Reserve Bank of India extended the existing Directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) against Hindu Cooperative Bank Limited, Pathankot, Punjab. The directions had originally been issued from the close of business on March 25, 2019 and had been extended periodically, with validity last extended up to September 24, 2021. RBI has now continued the directions for a further period of one month, from September 25, 2021 to October 24, 2021, subject to review. The release says the bank may continue to undertake banking business with restrictions until its financial position improves, and notes that the directions are not to be construed as cancellation of the banking licence.