RBI has extended regulatory directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Industrial Co-operative Bank Ltd., Guwahati, until October 4, 2026.
Regulatory Directions Extended for Guwahati Co-op Bank
The Reserve Bank of India has extended its regulatory directions to The Industrial Co-operative Bank Ltd., Guwahati, under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (Applicable to Co-operative Societies), until close of business on October 4, 2026. The extension was issued vide Directive No. DOR.MON./D-18/12-29-104/2026-27 dated June 25, 2026, and supersedes the earlier order dated July 3, 2025.
Section 35A empowers RBI to issue directives to banks in public interest or for depositors’ protection. Such directions may include restrictions on lending, withdrawals, or governance, depending on the institution’s financial health. The repeated extensions suggest ongoing supervisory concerns, possibly related to asset quality, capital adequacy, or governance lapses.
Practitioners in banking law should treat this as a signal of active regulatory intervention. The extension allows RBI more time to monitor corrective actions or plan restructuring. Co-operative banks remain under heightened scrutiny post the amalgamation and reform initiatives, making compliance with such directions critical for stability.