Case Brief
What Happened
The Reserve Bank of India, acting under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (as applicable to co-operative societies), extended the validity of its existing Directions against National Mercantile Co-operative Bank Ltd., Lucknow (U.P.). The extension was issued via Directive DOR.MON/D-106/12-28-015/2023-24 dated December 07, 2023 and keeps the Directions in force from the close of business on December 10, 2023 until the close of business on March 10, 2024, subject to review. The RBI stated that all other terms and conditions remain unchanged and noted that the extension should not be construed as satisfaction with the bank’s financial position.