Case Brief
What Happened
The Reserve Bank of India extended the Directions earlier imposed on Ramgarhia Co-operative Bank Ltd, New Delhi under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The earlier order had taken effect from the close of business on July 08, 2022 for six months; the new directive continues those restrictions till April 08, 2023, subject to review. RBI also clarified that the extension should not be construed as cancellation of the bank’s licence, and that the bank may continue banking business with restrictions until its financial position improves.