Case Brief
What Happened
The Reserve Bank of India extended the existing Directions applicable to The Mahabhairab Co-operative Urban Bank Ltd., Tezpur (Assam). The original directions, issued on October 12, 2023, had been in force for six months up to April 12, 2024. Under the new directive dated April 10, 2024, RBI continued those directions for three more months, from the close of business on April 12, 2024 to the close of business on July 12, 2024, subject to review, under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The press release clarifies that this extension is not a cancellation of the bank’s licence and that the bank will continue banking operations with restrictions until its financial position improves.