Case Brief
What Happened
The Reserve Bank of India extended the validity of its directions issued to Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P) under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS). The extension continues the existing order for three months, from October 28, 2022 to January 27, 2023, subject to review. The release says the bank has been under direction since January 28, 2022 and clarifies that the issuance of the directions should not be construed as cancellation of the banking licence.