Case Brief
What Happened
The Reserve Bank of India has extended the directions earlier issued to Navodaya Urban Co-operative Bank Ltd., Nagpur, Maharashtra, for a further six months, making them valid up to July 15, 2018, subject to review. These directions were issued under Section 35A(1) of the Banking Regulation Act, 1949 (AACS). RBI stated that the order is not a cancellation of the bank’s licence and that the bank will continue to carry on banking business with restrictions until its financial position improves, with the possibility of modifications depending on circumstances.