Case Brief
What Happened
The Reserve Bank of India extended the directions issued to Indian Mercantile Co-operative Bank Ltd., Lucknow, Uttar Pradesh for another six months, from March 12, 2016 to September 11, 2016, subject to review. These directions had originally been issued under Section 35A of the Banking Regulation Act, 1949 (AACS) and had been modified/extended several times earlier. The release explicitly says the other terms and conditions remain unchanged and cautions that the modification should not be construed as an improvement or deterioration in the bank’s financial position.