Case Brief
What Happened
The Reserve Bank of India extended the existing Directions applicable to Ramgarhia Co-operative Bank Ltd., New Delhi under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The bank had first been placed under Directions from the close of business on July 08, 2022, and the validity had already been extended once up to April 08, 2023. The latest directive continues those same restrictions till July 08, 2023, subject to review. RBI clarified that this extension should not be treated as cancellation of the banking licence, and the bank may continue banking business only with restrictions until its financial position improves.