The Reserve Bank of India (RBI) has extended the Directions issued to the Indian Mercantile Co-operative Bank Ltd., Lucknow for a further period of six months from March 12, 2019 to September 11, 2019, subject to review. The bank has been under directions since June 12, 2014 vide directive dated June 4, 2014 issued under sub-section (1) of Section 35A of the Banking Regulation Act, 1949 (AACS), according to RBI press release.
The release further says “ The aforesaid directive was modified / its validity was extended vide RBI directives dated July 30, 2014, December 8, 2014, June 2, 2015, September 7, 2015, October 19, 2015, December 07, 2015, March 04, 2016, September 02, 2016, November 25, 2016, March 09, 2017, September 01, 2017, March 06, 2018 and September 07, 2018. The validity of the directive, which was last extended up to March 11, 2019 has further been extended for a period of six months from March 12, 2019 to September 11, 2019 vide directive dated March 05, 2019, subject to review. A copy of the directive dated March 05, 2019 is displayed at the bank’s premises for the perusal of public.”
The modification of the directive by the Reserve Bank should per se not be construed as improvement or deterioration in the financial position of the bank. The Reserve Bank may consider modifications of the directive depending upon circumstances, it concludes.
