Case Brief
What Happened
The Reserve Bank of India has extended the period of operation of its existing directions issued to The Malkapur Urban Co-operative Bank Ltd., Buldhana, Maharashtra under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The directions, first issued on November 24, 2021 and previously extended up to November 24, 2022, will now continue from November 25, 2022 to February 24, 2023. The RBI says all other terms and conditions remain unchanged and that the issuance of directions should not be construed as cancellation of the bank's licence. The bank will continue to conduct banking business with restrictions until its financial position improves.