Case Brief
What Happened
The Reserve Bank of India has extended the validity of the existing directions imposed on National Mercantile Co-operative Bank Ltd., Lucknow (U.P.) under section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS). The directions, originally effective from the close of business on March 10, 2023, will now continue from the close of business on September 10, 2023 to the close of business on December 10, 2023, subject to review. RBI also clarified that the extension does not mean cancellation of the bank’s licence and that the directions may be modified depending on circumstances.