Case Brief
What Happened
The Reserve Bank of India, in public interest, extended the existing Directions applicable to United Co-operative Bank Limited, Bagnan, West Bengal. These directions were originally issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) from the close of business on July 18, 2018 and had already been extended from time to time, most recently up to April 18, 2021. RBI has now extended them further for two months, from April 19, 2021 to June 18, 2021. The release makes clear that this is not a cancellation of banking licence and that the bank will continue to undertake banking business with restrictions until its financial position improves.