Reserve Bank of India has extended the Directions issued earlier to Dr Shivajirao Patil Nilangekar Urban Co-operative Limited, Nilanga, in Latur district of Maharashtra.
It was on February 16, 2019 that the RBI imposed restriction on the UCB for the first time. In a latest notice, the apex bank has extended the period of direction for six months from October 16, 2019 to April 15, 2020, subject to review.
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.
Reserve Bank of India 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.