Case Brief
What Happened
The Reserve Bank of India, in public interest, extended the existing Directions against United Co-operative Bank Limited, Bagnan, West Bengal for six months from October 19, 2019 to April 18, 2020. These directions had originally been issued on July 18, 2018 under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), and had already been extended previously. RBI clarified that this should not be construed as cancellation of the bank’s licence. The bank may continue to undertake banking business, but only subject to the imposed restrictions until its financial position improves, and RBI may modify the directions depending on future circumstances.