The Maratha Sahakari Bank Ltd, Mumbai, Maharashtra, was placed under directions from close of business on August 31, 2016 vide directive dated August 31, 2016. The validity of the directions was extended from time to time vide subsequent Directives, the last being Directive dated March 25, 2019 and is valid upto September 30, 2019 subject to review.
In a press release RBI said “It is hereby notified for the information of the public that , the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the Directive dated August 31, 2016, as modified from time to time, issued to the above bank, the validity of which was last extended upto September 30, 2019 shall continue to apply to the bank for a further period of three months from October 01,2019 to December 31, 2019, vide Directive dated September 25, 2019 subject to review.”
A copy of the directive dated September 25, 2019 notifying the above extension is displayed at the bank’s premises for the perusal of public.
The aforesaid extension or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank, the regulator clarifies.