The Reserve Bank of India has extended Directions issued to the Janata Commercial Cooperative Bank Ltd., Khamgaon (Buldhana) for a further period of three months from June 14, 2015 to September 13, 2015, subject to review.
The bank was under directions since September 13, 2012. The Directions were earlier extended on four occasions for a period of six months each and on one occasion for a period of three months.
The Directions were imposed in exercise of powers vested in the Reserve Bank under sub section (1) of Section 35A of the Banking Regulation Act, 1949 (AACS). A copy of the Directions is displayed on the bank’s premises for perusal by interested members of public.
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. The Reserve Bank may consider modifications of these Directions depending upon circumstances.