Case Brief
What Happened
The Reserve Bank of India has extended the period of its 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 earlier directions, first issued on November 24, 2021 and previously extended up to February 24, 2023, will now continue from February 25, 2023 to May 24, 2023, subject to review. RBI states that all other terms and conditions remain unchanged and clarifies that this is not a cancellation of the bank’s licence. The bank will continue banking business with restrictions until its financial position improves.