The Reserve Bank of India (RBI) has extended the period of regulatory Directions imposed on two urban co-operative banks, The Bhavani Sahakari Bank Ltd., Mumbai and Innovative Co-operative Urban Bank Limited, Delhi, for a further three months, citing public interest.
In the case of the Bhavani Sahakari Bank Ltd., Mumbai, the RBI had earlier issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 on July 3, 2025, for a period of six months up to the close of business on January 4, 2026. The central bank has now extended these Directions from January 4, 2026 to April 4, 2026, subject to review.
Similarly, the RBI has extended the Directions imposed on Innovative Co-operative Urban Bank Limited, Delhi, which were also issued on July 3, 2025 and were valid up to January 4, 2026. The Directions will now remain in force for an additional three months, up to April 4, 2026, pending further assessment.
The RBI clarified that the extension and/or modification of the Directions should not be construed as an indication that the regulator is satisfied with the financial position of either bank. All other terms and conditions of the existing Directions will remain unchanged.
