Extension of validity of Directions under Section 35A of the Banking Regulation Act, 1949 (AACS)- Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P)
Case Brief
RBI has extended the validity of the directions already in force against Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P) from January 28, 2023 to April 27, 2023. The bank had been under direction since January 28, 2022 under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS). The release indicates this is a continuation of the existing order and expressly states it should not be construed as cancellation of the banking licence.
The Reserve Bank of India extended the directions issued to Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P) for a further period of three months, from January 28, 2023 to April 27, 2023. The bank had already been under directions since January 28, 2022 under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS), and the earlier validity up to January 27, 2023 was continued without change, subject to review. The press release notes that the directions do not per se mean cancellation of the banking licence.
Severity Assessment
This is an extension of RBI Section 35A directions on a co-operative bank, which is a broad business restriction carrying severity 4.
The bank remains subject to the same RBI-imposed operational restrictions until April 27, 2023, unless the directions are modified earlier. Depositors, customers, and counterparties remain affected by the continued restrictions, and the order is subject to RBI review.
Published as Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P)
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Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P.)
Business restriction · Extension
Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P)
Business restriction · Extension
Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P)
Business restriction · Extension
Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P)
Business restriction · Extension
Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P)
Business restriction · Extension
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