Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Samarth Urban Co-operative Bank Ltd., Osmanabad (Maharashtra), – Extensi

The Reserve Bank of India (RBI) has extended its regulatory directives on Samarth Urban Co-operative Bank Ltd., based in Osmanabad, Maharashtra, for an additional three months. The extension follows previous directives issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, which were originally imposed on October 6, 2025. The bank is now subject to these restrictions until January 7, 2027, unless reviewed earlier.

The RBI cited public interest as the reason for extending the directives, which were last extended on July 2, 2026. The central bank emphasized that the extension does not imply satisfaction with the bank’s financial position. The directives remain unchanged in their terms and conditions, maintaining the status quo for the institution.

The regulatory measures, imposed under specific sections of the Banking Regulation Act, 1949, restrict certain banking activities of Samarth Urban Co-operative Bank Ltd. These restrictions are typically imposed to safeguard depositors' interests and ensure the bank’s compliance with prudential norms.

The RBI’s decision to extend the directives reflects ongoing concerns about the bank’s operations. The extension period allows additional time for the bank to address regulatory issues, though no changes to the existing terms have been introduced.