The Reserve Bank of India has extended restrictions on Samarth Urban Co-operative Bank Ltd., Osmanabad, Maharashtra, under Section 35A read with Section 56 of the Banking Regulation Act, 1949, until October 7, 2026. The extension maintains prior limitations on operations to protect depositor interests.
RBI Extends Regulatory Directions for Samarth Urban Co-operative Bank
The Reserve Bank of India (RBI) has extended the regulatory directions imposed on Samarth Urban Co-operative Bank Ltd., Osmanabad, Maharashtra, effective until October 7, 2026. The extension was issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, through Directive No. DOR.RG/D-24/15-04-381/2026-2027 dated July 2, 2026, further extending the initial order dated October 6, 2025.
The original directions, effective for six months ending April 7, 2026, have since been extended twice, most recently to the close of business on October 7, 2026. Such directions are typically issued to safeguard depositor interests and maintain oversight in respect of financial irregularities or governance concerns. Restrictions commonly include limits on withdrawals, lending, and expansion of business operations.
"The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949...which were last extended up to the close of business on October 07, 2026."
This extension reflects ongoing supervisory oversight by the RBI over urban co-operative banks, particularly those exhibiting potential financial stress. Practitioners should remain alert to similar directions affecting other co-operative banks, especially when advising clients on deposit safety or banking operations in regions with such institutions.
Citations
- Banking Regulation Act, 1949, Section 35A read with Section 56
