Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Urban Co-operative Bank Limited, Dehradun

The Reserve Bank of India (RBI) issued a directive under the Banking Regulation Act, 1949 to Urban Co-operative Bank Limited, Dehradun, initially for six months starting February 10, 2026. The directive was later extended twice, with the latest extension now set to expire on November 10, 2026. The RBI has now decided to further extend these restrictions for an additional three months, until February 10, 2027, subject to periodic review.

The RBI emphasized that the extension does not indicate satisfaction with the bank’s financial position. The directive’s core terms and conditions remain unchanged, continuing to impose restrictions on the bank’s operations. These measures are part of the RBI’s supervisory framework to ensure compliance and stability in the banking sector.

The directive was first issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, granting the RBI authority to regulate cooperative banks. The RBI’s decision reflects ongoing concerns about the bank’s governance or financial health, prompting continued oversight.

Urban Co-operative Bank Limited, Dehradun, will operate under these restrictions for a total of nine months by February 2027. The RBI’s actions underscore its commitment to maintaining public confidence and stability in cooperative banking institutions.