In a positive development for the urban cooperative banking sector, the Reserve Bank of India (RBI) has withdrawn the regulatory Directions imposed on Sikar Urban Co-operative Bank Ltd, Sikar, under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
The Directions were originally issued on October 26, 2018, and were subsequently modified and extended from time to time, with the last extension valid up to the close of business on March 9, 2026. Following a review of the bank’s financial position, the RBI has now decided to withdraw the Directions with effect from the close of business on February 4, 2026.
The RBI stated that the decision was taken after being satisfied that the withdrawal of Directions was necessary in the public interest.
The withdrawal marks a notable regulatory milestone for Sikar Urban Co-operative Bank and reflects the impact of supervisory measures and corrective efforts undertaken over the years. The move is also seen as a positive signal for the urban cooperative banking sector, highlighting the scope for regulated banks to exit restrictions through improved financial and operational performance.
