The RBI extended regulatory restrictions under Section 35A of the Banking Regulation Act, 1949 for five co-operative banks until October 2026, citing public interest and ongoing monitoring.
Extensions Granted to Co-operative Banks
The Reserve Bank of India (RBI) has extended regulatory directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 for five urban and multi-state co-operative banks, effective up to October 2026. The affected institutions include Samarth Urban Co-operative Bank Ltd. (Osmanabad), Motiram Agrawal Jalna Merchants Co-operative Bank Ltd. (Jalna), Sadbhav Nagrik Sahakari Bank Maryadit (Chhatarpur), Samarth Sahakari Bank Ltd. (Solapur), and The Baghat Urban Co-operative Bank Limited (Solan).
Each extension is based on the RBI’s assessment that continued regulatory oversight is in the public interest. The directives, originally issued between October 2025 and July 2026, impose restrictions such as limits on lending, branch expansion, and governance, aimed at ensuring financial stability and depositor protection.
The extensions demonstrate the RBI’s vigilance over the co-operative banking sector, particularly institutions showing signs of stress. Practitioners in banking law should monitor such directives closely, as they have implications for compliance, governance, and financial restructuring under prudential norms.
Citations
- Banking Regulation Act, 1949, Sections 35A and 56