Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Samarth Sahakari Bank Ltd., Solapur – Extension of Period

The Reserve Bank of India (RBI) issued Directions to Samarth Sahakari Bank Ltd., Solapur, under Section 35A and Section 56 of the Banking Regulation Act, 1949, initially for six months ending April 07, 2026. These directions were previously extended until October 07, 2026, by a separate directive dated June 30, 2026. The RBI has now decided to further extend the period of operation of the Directive for an additional three months, concluding on January 07, 2027.

The extension is granted under powers vested in the RBI under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949. The RBI stated that the extension is necessary in the public interest, though it does not imply satisfaction with the bank’s financial position. The decision is subject to review during the extended period.

The RBI’s extension applies to the existing Directions issued to Samarth Sahakari Bank Ltd., Solapur, and all other terms and conditions of the original Directive remain unchanged. The bank is required to comply with the Directions as per the extended timeline.

The RBI emphasized that the extension should not be interpreted as an endorsement of the bank’s financial health. The regulatory oversight will continue, and the bank must adhere to the conditions set out in the original Directive without modification.