Case Brief
What Happened
The Reserve Bank of India extended the period of its existing directions issued to Garha Co-operative Bank Ltd., Guna, Madhya Pradesh under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The directions had originally been issued from the close of business on February 24, 2021 and had already been extended from time to time, most recently up to August 24, 2022. RBI further extended them from August 25, 2022 to November 24, 2022, subject to review. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI stated that the directions are not to be treated as cancellation of the bank’s licence and that the bank will continue to conduct banking business with restrictions until its financial position improves.