Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Kanaka Pattana Sahakara Bank Niyamita, Davangere

The Reserve Bank of India (RBI) issued a six-month directive to Kanaka Pattana Sahakara Bank Niyamita, Davangere, under the Banking Regulation Act, 1949, which was set to expire on September 12, 2026. The central bank cited public interest as the primary reason for the initial extension period. The directive was issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, granting the RBI supervisory powers over the cooperative bank's operations.

The RBI has now decided to further extend the directive for an additional three months, from September 12, 2026, to December 12, 2026. This extension is subject to periodic review by the RBI to assess the bank’s compliance and financial stability. The decision reflects the central bank’s ongoing oversight role in ensuring depositor protection and systemic stability within the cooperative banking sector.

The RBI clarified that the extension does not imply satisfaction with the bank’s financial position, emphasizing that the directive remains a regulatory tool to address concerns. The central bank’s actions are part of its broader mandate to maintain financial discipline and safeguard public funds in cooperative banks.

All other terms and conditions of the original directive remain unchanged during this extended period. The RBI’s decision underscores its commitment to continuous monitoring and intervention where necessary to uphold banking sector integrity and depositor confidence.