Case Brief
What Happened
The Reserve Bank of India has extended, without changing other terms, the existing directions imposed on Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra. These directions had been issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 and were previously extended up to August 8, 2022. Under the fresh extension, they continue from August 9, 2022 to November 8, 2022, subject to review. RBI also clarified that the directions are not a cancellation of the bank’s licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.