The Reserve Bank of India has extended regulatory restrictions on two urban co-operative banks, The Bhavani Sahakari Bank Ltd. and Innovative Co-operative Urban Bank Limited, for a further period of three months, till July 4, 2026. The directions, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, were earlier set to end on April 4, 2026.
Both banks were first placed under RBI directions on July 3, 2025, for six months, and have since been under continuous regulatory supervision through periodic extensions.
The latest move comes as the central bank deemed it necessary in public interest to continue the restrictions while keeping the situation under review.
The RBI clarified that the extension should not be interpreted as a sign of satisfaction with the financial position of the banks.
All existing terms and conditions of the directives remain unchanged, indicating continued operational curbs aimed at safeguarding depositors and ensuring stability in the co-operative banking sector.
