Case Brief
The Reserve Bank of India has further extended the Directions earlier issued to Navodaya Urban Co-operative Bank Ltd, Nagpur, Maharashtra for three months, with validity now up to January 15, 2018, subject to review. These Directions were issued under Section 35A of the Banking Regulation Act, 1949 (AACS). RBI clarified that this should not be construed as cancellation of the bank’s banking licence, and that the bank will continue to undertake banking business with restrictions until its financial position improves. RBI may also consider modifications to the Directions depending on circumstances.
Action Snapshot
- Primary Impact
- Extension
- Entity Type
- Co-operative bank
- Location
- Nagpur, Maharashtra