Case Brief
What Happened
The Reserve Bank of India has extended the existing directions issued in public interest to Independence Co-operative Bank Ltd., Nashik, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The directions had originally taken effect from the close of business on February 09, 2021 and were earlier valid up to January 10, 2022. RBI has now continued them for a further two-month period from January 11, 2022 to March 10, 2022, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI notes that the order is not to be construed as cancellation of the bank’s licence, and that the bank may continue to undertake banking business with restrictions until its financial position improves.