Case Brief
The Reserve Bank of India has further extended the directions previously issued to Dr. Shivajirao Patil Nilangekar Co-operative Bank Ltd., Nilanga, Dist. Latur, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). The earlier directions had been in force from the close of business on February 16, 2019 to August 15, 2019, and the extension continues them from August 16, 2019 to October 15, 2019. The directions include restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI notes that the bank will continue to conduct banking business with these restrictions until its financial position improves, and clarifies that the directions should not be construed as cancellation of the banking licence.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location