The Reserve Bank of India (RBI) has extended regulatory restrictions on Sarvodaya Co-operative Bank Ltd., Mumbai, keeping the bank under close supervision till July 15, 2026.
The directions, first imposed on April 15, 2024 under Sections 35A and 56 of the Banking Regulation Act, 1949, were set to end on April 15, 2026 but have now been further extended.
As per the RBI’s latest directive dated April 9, 2026, all existing terms and conditions of the restrictions will continue unchanged. These directions are typically imposed to safeguard depositor interests and ensure financial stability in stressed cooperative banks.
Importantly, the RBI clarified that the extension should not be seen as a sign of improvement in the bank’s financial health. This indicates that concerns over the bank’s position persist, warranting continued regulatory oversight.
The directive has been displayed at the bank’s premises for public awareness. The move underscores RBI’s cautious approach as it monitors the bank’s recovery and operational performance closely.
