Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Sadbhav Nagrik Sahakari Bank Maryadit, Chhatarpur, Madhya Pradesh – Exte

The Reserve Bank of India (RBI) issued a six-month directive to Sadbhav Nagrik Sahakari Bank Maryadit, Chhatarpur, Madhya Pradesh, under Section 35A read with Section 56 of the Banking Regulation Act, 1949, effective from October 6, 2025, to April 7, 2026. This was later extended to October 7, 2026, via a directive dated July 2, 2026. The RBI has now decided to further extend these restrictions for an additional three months, until January 7, 2027.

The RBI’s decision to extend the directive is based on its assessment that it is necessary in the public interest. The central bank stated it is satisfied with the need to continue the restrictions beyond October 7, 2026, to ensure regulatory oversight. The extension is subject to periodic review during this period.

The RBI clarified that the extension of the directive does not imply satisfaction with the bank’s financial position. The supervisory measures remain in place to address concerns identified earlier, and the bank must continue adhering to the existing terms and conditions.

The directive’s primary purpose is to safeguard depositors’ interests and maintain stability in the cooperative banking sector. The RBI retains the authority to modify or revoke the directive at any time based on the bank’s compliance and evolving circumstances.