The Reserve Bank of India (RBI) has extended the Directions issued to the Indian Mercantile Co-operative Bank Ltd., Lucknow for a further period of six months from September 12, 2017 to March 11, 2018, subject to review. The bank has been under directions since June 12, 2014 vide directive dated June 4, 2014 issued under sub-section (1) of Section 35A of the Banking Regulation Act, 1949 (AACS).
The aforesaid directive was modified / its validity was extended vide RBI directives dated July 30, 2014, December 8, 2014, June 2, 2015, September 7, 2015, October 19, 2015, December 07, 2015, March 04, 2016, September 02, 2016, November 25, 2016 and March 09, 2017. The validity of the directive, which was last extended up to September 11, 2017 has further been extended for a period of six months from September 12, 2017 to March 11, 2018 vide directive dated September 01, 2017, subject to review. A copy of the directive dated September 01, 2017 is displayed at the bank’s premises for the perusal of public.
The modification of the directive by the Reserve Bank should per se not be construed as improvement or deterioration in the financial position of the bank. The Reserve Bank may consider modifications of the directive depending upon circumstances.
Press Release : 2017-2018/683