Case Brief
What Happened
The Reserve Bank of India extended the validity of its existing directions against The Karad Janata Sahakari Bank Ltd., Karad, Maharashtra. The original directions were issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, and had previously been extended up to June 9, 2020. By the new directive dated June 03, 2020, RBI stated that the same directions, as modified from time to time, would continue to apply for a further period of three months, from June 10, 2020 to September 9, 2020, subject to review. The release also says that all other terms and conditions remain unchanged and that the extension should not be read as implying substantive improvement in the bank's financial position.