Case Brief
What Happened
RBI has further extended the Section 35A read with Section 56 directions applicable to Garha Co-operative Bank Ltd., Guna, Madhya Pradesh. The earlier directions, originally issued from the close of business on February 24, 2021, had already been extended from time to time, and this order continues them from February 25, 2022 to May 24, 2022, subject to review. The restrictions include ceilings on withdrawal and acceptance of deposits. RBI states that the bank will continue to undertake banking business with restrictions until its financial position improves, and that the directions should not be construed as a cancellation of the bank’s licence.