Case Brief
The Reserve Bank of India has extended the directions already in force against Dr. Babasaheb Ambedkar Nagari Sahakari Bank Maryadit, Aurangabad, Maharashtra, for three more months from February 04, 2016 to May 03, 2016, subject to review. The release notes that the bank had been under such directions since May 2012 and that the directions had been extended several times earlier. RBI states that the directions were issued under Section 35A(1) of the Banking Regulation Act, 1949 (AACS), and expressly clarifies that this should not be construed as cancellation of the bank's licence. The bank can continue banking business, but only with restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Aurangabad, Maharashtra