The Reserve Bank of India (RBI) has extended the period of regulatory restrictions imposed on three cooperative banks, Samarth Sahakari Bank Ltd., Solapur; Samarth Urban Co-operative Bank Ltd., Osmanabad; and The Industrial Co-operative Bank Ltd., Guwahati, for a further three months, up to early July 2026.
The directions, originally issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, were set to expire in April 2026. However, citing public interest, the RBI has decided to continue these restrictions until July 4–7, 2026, depending on the respective bank, with the situation to be reviewed thereafter.
Importantly, the central bank clarified that the extension should not be interpreted as a sign of satisfaction with the financial health of these institutions. All existing terms and conditions under the directives remain unchanged.
Such regulatory actions typically involve curbs on lending, deposit withdrawals, or expansion activities, aimed at safeguarding depositors’ interests and ensuring financial stability.
The move signals continued supervisory caution by the RBI as it closely monitors the recovery and compliance progress of these cooperative banks.
