In a press release the central bank RBI has extended the Directions on Amanath Co-operative Bank based in Bengaluru. The first Directions on the UCB was issued in April 2013 and is continuing till date.
In the latest press release RBI says “It is hereby notified that the above directive shall continue to apply for a further period of six months from July 05, 2016 to January 04, 2017 subject to review.”
The issue of the above Directions by the RBI should not per-se be construed as cancellation of banking licence by RBI.
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.