The Reserve Bank of India has extended its directives under Section 35A read with Section 56 of the Banking Regulation Act, 1949, for The Baghat Urban Co-operative Bank Limited, Solan, and Ramgarhia Co-operative Bank Limited, New Delhi. The extension covers a further three months from October 8, 2026, to January 8, 2027, according to RBI press releases dated October 5, 2026.
The directives were initially issued for six months and have been extended multiple times since. For Baghat Urban Co-operative Bank, the directive was first issued on October 6, 2025, and last extended on July 1, 2026. Similarly, for Ramgarhia Co-operative Bank, the directive was first issued on July 7, 2022, with the most recent extension on June 30, 2026. The RBI stated that the extensions are necessary in the public interest but clarified that they do not imply satisfaction with the banks' financial positions.
These extensions reflect ongoing regulatory oversight of cooperative banks facing operational or financial challenges. The RBI’s use of Section 35A and Section 56 allows it to impose restrictions or directives to protect depositors and maintain stability. Similar measures have been applied to other cooperative banks in recent years to address governance and solvency concerns, underscoring the RBI’s cautious approach toward these institutions.
The RBI’s latest press releases, numbered 2026-2027/1250 for Baghat Urban Co-operative Bank and 2026-2027/1249 for Ramgarhia Co-operative Bank, confirm the directive extensions and state that all other terms and conditions remain unchanged. The directives will be subject to review before the January 8, 2027 deadline.