The Reserve Bank of India (RBI) has extended the validity of regulatory directions imposed on the Irinjalakuda Town Co-operative Bank Ltd., Kerala, and Sonpeth Nagari Sahakari Bank Maryadit, Sonpeth (Maharashtra) for a further period of three months, up to the close of business on October 30, 2026, subject to review.
The restrictions, originally imposed on July 29, 2025 under Section 35A read with Section 56 of the Banking Regulation Act, 1949, were earlier extended till July 30, 2026. RBI said the latest extension has been made in the public interest.
The central bank clarified that the extension of these directions should not be construed as an indication that it is satisfied with the financial position of either bank. It also stated that all other terms and conditions of the original directives will remain unchanged.
Such directions generally place operational restrictions on banks to safeguard the interests of depositors while corrective measures are undertaken. RBI reviews these directions periodically and extends or modifies them depending on the financial condition and progress made by the concerned banks.
