Case Brief
What Happened
The Reserve Bank of India has extended the validity of the existing directions issued to Sikar Urban Co-operative Bank Ltd., Sikar, Rajasthan. The bank had been placed under directions from close of business on November 9, 2018, and the validity had already been extended once up to May 9, 2020. By the fresh directive dated May 4, 2020, RBI stated that the earlier directive would continue to apply from May 10, 2020 to September 9, 2020, subject to review, with all other terms and conditions unchanged. This is an extension of the earlier Section 35A action rather than a new penalty or withdrawal.