Case Brief
What Happened
The Reserve Bank of India has extended the validity of its earlier Directions issued under section 35A read with section 56 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) in respect of Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P.). The bank had originally been placed under Directions from January 28, 2022, and those Directions had already been extended from time to time. By the latest directive dated January 23, 2024, the RBI has continued the same Directions from close of business on January 27, 2024 to close of business on April 27, 2024, subject to review, with all other terms and conditions unchanged. The press release also clarifies that this extension should not per se be construed as cancellation of the bank’s banking licence.