Case Brief
The Reserve Bank of India extended the existing directions issued to Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, Dist-Amravati, Maharashtra. The directions were originally issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), and the extension runs from July 18, 2019 to October 17, 2019, subject to review. The restrictions include ceilings on withdrawal and acceptance of deposits. RBI stated that the bank may continue to undertake banking business with restrictions until its financial position improves, and clarified that the directions are not to be construed as cancellation of the banking licence.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Warud, Maharashtra