Case Brief
What Happened
The Reserve Bank of India has extended the validity of the directions issued to Indian Mercantile Co-operative Bank Ltd., Lucknow for six more months, from March 12, 2018 to September 11, 2018. The bank has been under directions since June 12, 2014 under Section 35A of the Banking Regulation Act, 1949 (AACS), and the directive had been modified or extended several times earlier. The release says the extension should not be construed as improvement or deterioration in the bank's financial position and notes that RBI may further modify the directive depending on circumstances.