The Reserve Bank of India (RBI) had issued directives to Ajantha Urban Co-operative Bank, Aurangabad, Maharashtra, under Section 35A and Section 56 of the Banking Regulation Act, 1949. The initial directive (No. NGP.DoS.SSM 3.No.S675/15.03.302/2023-2024) was issued on August 28, 2023, for six months, extending up to February 29, 2024. It was later extended until February 28, 2025, through another directive (DOR.MON.D-75/12-22-740/2024-25) dated November 26, 2024.
The Reserve Bank of India is satisfied that in the public interest, it is necessary to further extend the period of operation of the Directive beyond the close of business on February 28, 2025. Accordingly, the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby extends the Directive for a further period of three months from the close of business on February 28, 2025, to the close of business on May 28, 2025, subject to review.
The recent extension of restrictions until May 28, 2025, indicates that the RBI is still monitoring the bank’s financial health. If the bank improves its financial position, the restrictions may be lifted. If not, further action could be considered.
