Case Brief
What Happened
The Reserve Bank of India extended the existing directions issued to Padmashri Dr. Vithalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). These directions, originally issued from the close of business on May 19, 2018 and last extended up to March 17, 2022, were continued for a further three months from March 18, 2022 to June 17, 2022, subject to review. The release says the directions contain restrictions and/or ceilings on withdrawal and acceptance of deposits, and clarifies that the order is not to be construed as cancellation of the bank’s banking licence.