Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Sonpeth Nagari Sahakari Bank Maryadit, Sonpeth, Dist. Parbhani – Extensi

The Reserve Bank of India (RBI) issued an extension of its existing regulatory directive to Sonpeth Nagari Sahakari Bank Maryadit, Sonpeth, Dist. Parbhani, under Sections 35A and 56 of the Banking Regulation Act, 1949. The directive, originally issued on July 29, 2025, and previously extended to October 30, 2026, has now been further extended by three months. The RBI cited public interest as the basis for this decision, emphasizing the necessity of continued oversight.

The extension, effective from October 31, 2026, to January 30, 2027, applies to the bank’s operations and is subject to periodic review by the RBI. The directive imposes restrictions on the bank’s activities, though the RBI clarified that the extension does not indicate satisfaction with the bank’s financial position. The RBI’s decision underscores its commitment to maintaining stability in the cooperative banking sector.

The RBI’s action follows its assessment that the bank requires additional time to address supervisory concerns and comply with regulatory requirements. The directive’s terms and conditions remain unchanged, ensuring continuity in the bank’s operational restrictions. The extension reflects the RBI’s cautious approach to managing risks in cooperative banks.

This marks the third extension of the directive since its initial issuance, demonstrating the RBI’s ongoing scrutiny of the bank’s governance and financial health. The RBI’s powers under the Banking Regulation Act enable it to impose such directives to protect depositors and maintain systemic stability. The bank’s customers and stakeholders are advised to remain aware of the continuing restrictions.