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The Reserve Bank of India, in a press release stated that it had issued directions to Bhagyodaya Friends Urban Co-operative Bank Ltd. Warud, Dist-Amravati, Maharashtra in exercise of powers vested in it under sub-section (1) of Section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS) from the close of business on January 17, 2019. The Reserve Bank of India has now further extended the directions for a period of three months 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. RBI 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.