The Reserve Bank of India (RBI) has extended the regulatory restrictions imposed on Gujarat-based Valsad Mahila Nagrik Sahakari Bank for a further period of three months, citing public interest considerations.
The restrictions, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, were originally imposed through a directive dated December 17, 2025, and were set to expire on June 18, 2026.
RBI has now extended the operation of the directive from the close of business on June 18, 2026, to the close of business on September 18, 2026, subject to review.
The central bank clarified that all other terms and conditions of the existing directive will remain unchanged during the extended period.
Importantly, RBI emphasized that the extension or modification of the directive should not be construed as an indication that it is satisfied with the financial position of the bank. The move suggests that the regulator continues to closely monitor the affairs of the urban cooperative bank while assessing its financial health and corrective measures.
