Case Brief
What Happened
The Reserve Bank of India has further extended the Directions already in force against United Co-operative Bank Limited, Bagnan, West Bengal. The original directions were issued in public interest under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), effective from the close of business on July 18, 2018, and had been extended from time to time, most recently up to July 18, 2020. The current release extends the same directions for an additional three months, from July 19, 2020 to October 18, 2020. RBI notes that the bank will continue to undertake banking business with restrictions until its financial position improves, and that the directions may be modified depending on circumstances. The release expressly says this should not be construed as cancellation of the bank’s licence.