Case Brief
What Happened
RBI has continued the restrictions already imposed on Lucknow Urban Co-operative Bank Ltd., Lucknow (U.P.) by extending the validity of the existing directions issued under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS). The earlier directive, effective from the close of business on July 28, 2022, had been valid up to January 28, 2023; the new order extends it for another three months from January 29, 2023 to April 28, 2023, subject to review. RBI also notes that the directions may be modified depending on circumstances and clarifies that the order should not be taken as cancellation of the bank's licence.