The Reserve Bank of India has extended Directions issued to the Janata Commercial Cooperative Bank located at Khamgaon, (Buldhana) in Maharashtra for a further period of three months.
The bank which has been under directions since September 2012 will remain so up to June 13, 2015, a press release from the Regulator reads.
According to the Directions, the UCB cannot grant or renew any loans and advances, make any investment among others without the prior approval of RBI.
The Directions were earlier extended on four occasions for a period of six months each. A copy of the Directions is displayed on the bank’s premises for perusal by interested members of public.
Clarifying the RBI says the issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves.