Case Brief
What Happened
Reserve Bank of India has further extended the Directions issued to Kolikata Mahila Co-operative Bank Limited, Kolkata, under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS). These directions had been in force since July 09, 2019 and were last extended up to January 09, 2021; the new extension runs from January 10, 2021 to April 09, 2021. RBI says the bank will continue to undertake banking business with restrictions until its financial position improves and notes that the directions may be modified depending on circumstances. The release also clarifies that the directions should not per se be construed as cancellation of the bank’s licence.