RBI extends Section 35A curbs on five co-operative banks by 3 months
Why in the news
On 5 October 2026 the Reserve Bank of India (RBI) extended, by three months, the supervisory directions it had placed on five co-operative banks under the Banking Regulation Act, 1949.
Key facts
- The directions were issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
- Each extension is for three months and remains subject to review; all other terms stay unchanged.
- Ramgarhia Co-operative Bank, New Delhi, has been under directions since 7 July 2022, longest among the five.
- RBI stated that the extension should not by itself be read as RBI being satisfied with the financial position of the banks.
| Bank | Directions first issued | Now valid till (close of business) |
|---|---|---|
| Motiram Agrawal Jalna Merchants Co-operative Bank, Jalna | 10 April 2026 | 10 January 2027 |
| Sadbhav Nagrik Sahakari Bank Maryadit, Chhatarpur (MP) | 6 October 2025 | 7 January 2027 |
| Samarth Sahakari Bank, Solapur | 6 October 2025 | 7 January 2027 |
| The Baghat Urban Co-operative Bank, Solan | 6 October 2025 | 8 January 2027 |
| Ramgarhia Co-operative Bank, New Delhi | 7 July 2022 | 8 January 2027 |
About Section 35A directions
RBI issues and extends such directions when it is satisfied that this is necessary in the public interest. Ramgarhia’s directions were first set for six months, from 8 July 2022 to 8 January 2023, and have been extended repeatedly since.
Exam angle
- Remember the pairing: Section 35A with Section 56 of the BR Act, 1949 for co-operative banks.
- Extensions are subject to review and do not signal RBI’s satisfaction with a bank’s finances.
- Link with RBI supervision of urban co-operative banks and depositor protection.