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The Reserve Bank of India said in a press release that, in the public interest, it had issued directions to Dr. Shivajirao Patil Nilangekar Co-operative Bank Ltd., Nilanga, Dist. Latur, Maharashtra in exercise of powers vested in it under sub-section (1) of Section 35A of the Banking Regulation Act, 1949 (AACS) read with Section 56 of Banking Regulation Act, 1949 for a period of six months from the close of business on February 16, 2019 upto August 15, 2019.
The Reserve Bank of India further said in a circular that it has now further extended the directions for a period of two months from August 16, 2019 to October 15, 2019. The Directions stipulate certain restrictions and / or ceiling on withdrawal / acceptance of deposits. The detailed Directions are displayed on the bank’s premises for interested members of public to peruse. The RBI said that it may consider modifications of the Directions depending upon the circumstances. The issue of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India. The bank will continue to undertake banking business with restrictions till its financial position improves.