The Directions has been extended for a further period of six months from the close of business on March 01, 2015 to August 31, 2015, subject to review. The bank has been under directions since August 28, 2014.
The Reserve Bank has issued these directions in exercise of powers vested in it under sub section (1) of Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949.
The issue of the Directions by the Reserve Bank should per se not be construed to imply that the Reserve Bank is satisfied about substantive improvement in the financial position of bank.