Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Lokapavani Mahila Sahakari Bank Niyamitha, Mandya

The Reserve Bank of India issued a directive under the Banking Regulation Act, 1949, extending existing restrictions on Lokapavani Mahila Sahakari Bank Niyamitha, Mandya, for six months until January 30, 2026. The initial directive was set to expire on October 30, 2026, but the RBI deemed further extension necessary in the public interest. The bank, which had been operating under regulatory oversight since July 29, 2025, faced continued scrutiny over its financial and operational practices.

In a subsequent move, the RBI extended the directive for an additional three months, from October 30, 2026, to January 30, 2027. This extension was issued under powers granted by Section 35A read with Section 56 of the Banking Regulation Act, 1949. The decision reflects the central bank’s ongoing assessment of the bank’s compliance and stability, though it does not indicate approval of the bank’s financial position.

The RBI’s extension does not imply satisfaction with the bank’s financial health, as explicitly stated in the directive. The central bank emphasized that the extension is a precautionary measure to safeguard depositors’ interests and maintain systemic stability. The bank remains under strict regulatory oversight, with no changes to the original terms of the directive.

The directive’s extension underscores the RBI’s commitment to enforcing prudential norms and addressing governance concerns at cooperative banks. While the bank continues to operate under restrictions, the RBI retains the authority to modify or revoke the directive based on ongoing reviews. Depositors and stakeholders are advised to monitor further updates from the regulator.