Reserve Bank of India has now further extended the directions to Bhagyodaya Friends Urban Co-operative Bank Ltd. Warud, Dist-Amravati, Maharashtra for a period of three months.
The UCB was issued Directions first in January 2019. Now it has been extended from July 18, 2019 to October 17, 2019, subject to review.
The directions stipulate certain restrictions and/or ceilings on withdrawal/acceptance of deposits. A copy of the Directive is displayed at the bank’s premises for perusal of public. 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.