Case Brief
What Happened
The Reserve Bank of India extended the period of its existing directions against The Malkapur Urban Co-operative Bank Ltd., Buldhana, Maharashtra. The directions, originally issued from the close of business on November 24, 2021 under Section 35A read with Section 56 of the Banking Regulation Act, 1949, were continued for a further three months from May 25, 2022 to August 24, 2022, subject to review. The restrictions include ceilings on withdrawal and acceptance of deposits. RBI clarified that the issuance of these directions should not be construed as cancellation of the bank’s licence, and that the bank will continue to undertake banking business with restrictions until its financial position improves.