The Reserve Bank of India has extended Directions issued to Vitthal Nagari Sahakari Bank Ltd., Latur, Maharashtra for a further period of three months from May 15, 2015 to August 14, 2015, subject to review.
The bank was under directions since November 15, 2013. The Directions were earlier extended on three occasions for a period of six months each.
The Directions were imposed in exercise of powers vested in the Reserve Bank under sub Section (1) of Section 35A of the Banking Regulation Act, 1949, (AACS). A copy of the Directions is displayed on the bank’s premises for perusal by interested members of public.
The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves.
The Reserve Bank may consider modifications of these Directions depending upon circumstances.