Case Brief
What Happened
The Reserve Bank of India has continued the existing directions issued to The Laxmi Co-operative Bank Limited, Solapur, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The release says the bank was already under directions that had been modified from time to time and last extended up to August 11, 2022. These directions are now extended for a further period of three months, from August 12, 2022 to November 11, 2022, subject to review, with all other terms and conditions unchanged. RBI also clarifies that the issuance of directions should not be construed as cancellation of the banking licence, and that the bank will continue to undertake banking business with restrictions until its financial position improves.