Case Brief
What Happened
The Reserve Bank of India extended the validity of the directions issued to Indian Mercantile Co-operative Bank Ltd., Lucknow under Section 35A of the Banking Regulation Act, 1949 (AACS). The extension runs from March 12, 2017 to September 11, 2017, subject to review, and follows several earlier extensions of the same directive. RBI also modified the directive to permit adjustment of loans against deposits of the same borrower, subject to specified conditions, while noting that the modification should not be construed as improvement or deterioration in the bank's financial position.