The Reserve Bank of India (RBI) has extended the operational directive imposed on The Konark Urban Co-operative Bank Ltd., Ulhasnagar, for an additional three months until January 23, 2027. This extension follows previous directives dating back to April 23, 2024, with the latest extension announced on July 15, 2026, and now further prolonged by the RBI in the public interest, according to an official RBI statement.
The directive, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, was initially set for six months but has been extended multiple times. The RBI's extension order, referenced as Directive No. DOR.MON/D-26/12.22.805/2026-27, explicitly states that the extension does not imply satisfaction with the bank's financial condition. All other terms and conditions of the original directive remain unchanged, as noted by the RBI’s Chief General Manager, Brij Raj.
This continued regulatory oversight reflects ongoing concerns about the financial health and operational stability of Konark Urban Co-operative Bank. The RBI’s use of Section 35A is a measure typically reserved for banks facing significant difficulties, aiming to protect depositors and maintain public confidence. The extension is part of a broader regulatory framework that has seen similar actions taken against other cooperative banks in India to ensure systemic stability.
The directive extension will last until the close of business on January 23, 2027, subject to further review by the RBI. The bank and its stakeholders remain under close watch as the regulator monitors the situation to determine if additional measures are necessary to safeguard public interest.