Case Brief
What Happened
The Reserve Bank of India has extended the existing directions imposed on Nagar Urban Co-operative Bank Ltd., Ahmednagar under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The bank was originally placed under directions from the close of business on December 06, 2021 for six months, and those directions had already been extended from time to time, with the latest continuation pushing the validity to March 06, 2023. The present directive continues the same terms and conditions unchanged until June 06, 2023, subject to review. RBI also notes that the extension should not be construed as satisfaction with the bank’s financial position.