Reserve Bank of India extended the period of directions on Assam based Mahabhairab Cooperative Urban Bank for a further period of three months.
Issuing a press release in this connection, RBI said, “In exercise of the powers vested in it under subsection (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank further for a period of three months from close of business on April 12, 2024 to close of business on July 12, 2024, as per the directive, subject to review”.
“The extension of Directions should not per se be construed as cancellation of banking license by the Reserve Bank of India. The bank will continue to undertake banking business with restrictions till its financial position improves”, it further added.