Case Brief
The Reserve Bank of India extended the Directions issued to Vitthal Nagari Sahakari Bank Ltd., Latur, Maharashtra for a further period of three months, from May 15, 2015 to August 14, 2015, subject to review. These directions were originally imposed under Section 35A of the Banking Regulation Act, 1949 (AACS), and had been extended earlier on three occasions for six months each. RBI clarified that the order is not a cancellation of the bank’s licence and that the bank may continue banking business, but only with restrictions, until its financial position improves and the Reserve Bank decides otherwise.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Latur, Maharashtra