Case Brief
What Happened
The Reserve Bank of India has extended the period of its 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 effective from the close of business on May 19, 2018 and last extended up to August 17, 2022, will continue for a further three months from August 18, 2022 to November 17, 2022, subject to review. The release says the directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI also clarifies that this should not be construed as cancellation of the bank’s licence, and the bank will continue to undertake banking business with restrictions until its financial position improves.