The trouble for Satara(Maharashtra) based UCB named Ajinkyatara Sahakari Bank has not ended yet. Its Direction period is ending on March 30, 2017 when the RBI will take a final call.
The UCB was first place under Direction from the close of business on September 30, 2015, under Section 35A of the Banking Regulation Act, 1949 (AACS).
The validity of the Direction period has been extended quite a few times as RBI was not satisfied with the UCB’s performance.
The aforesaid 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, it says.