RBI has extended Direction on Bhagyodaya Friends Urban Co-operative Bank, Amravati for a further period of one month from April 18, 2021 to May 17, 2021, subject to review. The Directions stipulate certain restrictions and / or ceiling on withdrawal / acceptance of deposits.
The UCB was placed under Direction from the close of business on January 17, 2019. These directions were modified from time to time, the validity of which was last extended upto April 17, 2021.
The detailed Directions are displayed on the bank’s premises for interested members of public to peruse. The 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, clarifies RBI.