The Reserve Bank of India (RBI) has extended the period of regulatory directions imposed on two cooperative banks, Indian Mercantile Co-operative Bank Limited (IMCBL), Lucknow, and The Irinjalakuda Town Co-operative Bank Ltd., Kerala, by a further three months, citing public interest.
The RBI had initially issued directions to IMCBL under Section 35A read with Section 56 of the Banking Regulation Act, 1949, on January 28, 2022, for six months. These directions have been modified and extended periodically, with the last extension valid up to the close of business on January 27, 2026.
The central bank has now extended the directions for an additional three months, from January 27, 2026, to April 27, 2026, subject to review. All other terms and conditions of the existing directions will remain unchanged.
Similarly, the RBI had imposed directions on the Irinjalakuda Town Co-operative Bank Ltd. on July 29, 2025, for a period of six months up to January 30, 2026. Considering public interest, the RBI has extended the operation of these directions by another three months, from January 30, 2026, to April 30, 2026, subject to review.
The RBI clarified that the extension and/or modification of the directions should not be construed as an indication of satisfaction with the bank’s financial position. All other conditions of the directive will continue unchanged.
