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The Reserve Bank of India (RBI) has extended the period of Directions issued under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies) on Nagar Urban Co-operative Bank Ltd., Ahmednagar.
Originally, the Directions were imposed from the close of business on December 6, 2021 for a period of six months. The validity of these Directions had been extended multiple times, the last extension being up to March 6, 2023.
RBI, in its directive DOR.MON.D-81/12.22.159/2022-23 dated March 6, 2023, has now extended the Directions till June 6, 2023, subject to review. All other terms and conditions of the original Directions remain unchanged. A copy of the directive is displayed at the bank’s premises for public perusal.
RBI emphasized that this extension should not be construed as satisfaction with the financial position of the bank. The bank continues to operate under restrictions as per the previous directives to protect the interests of depositors and ensure prudent banking operations.
[RBI]