Case Brief
The Reserve Bank of India further extended the existing Directions issued to Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, District Amravati, Maharashtra, under Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56. The Directions, first effective from January 17, 2019 and previously extended up to August 17, 2020, were continued for another two months up to October 17, 2020, subject to review. These directions impose restrictions and/or ceilings on withdrawal and acceptance of deposits, while the bank is permitted to continue banking business under those constraints. RBI also clarified that the issuance of Directions should not be construed as cancellation of the banking licence.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Warud, Maharashtra