Case Brief
The Reserve Bank of India has further extended the Section 35A read with Section 56 directions applicable to Garha Co-operative Bank Ltd., Guna, Madhya Pradesh. The extension runs from May 25, 2022 to August 24, 2022, and follows earlier extensions of the same order first issued from the close of business on February 24, 2021. The directions continue to impose restrictions and/or ceilings on withdrawal and acceptance of deposits. RBI clarifies that this is not a cancellation of the bank's licence, and the bank may continue banking business only under these restrictions until its financial position improves.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Guna, Madhya Pradesh