The Reserve Bank of India (RBI) has extended the operational directive imposed on Samarth Urban Co-operative Bank Ltd., Osmanabad, Maharashtra, for an additional three months, effective from October 7, 2026, to January 7, 2027. This extension follows previous directives issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, initially applied in October 2025 and last extended in July 2026, according to the RBI press release.
The directive was first issued on October 6, 2025, and has been extended multiple times as the RBI continues to monitor the bank's financial health. The latest extension was authorized under Directive No. DOR.RG/D-24/15-04-381/2026-2027 dated July 2, 2026, with the RBI stating the extension is necessary in the public interest. The RBI clarified that this extension does not indicate satisfaction with the bank’s financial condition and that other terms of the directive remain unchanged.
Such directives are part of the RBI’s regulatory framework to ensure the stability and soundness of cooperative banks, which often face unique challenges compared to commercial banks. Extensions like this are not uncommon when a bank’s financial position requires ongoing oversight. The RBI’s continued intervention underscores the importance of safeguarding depositors’ interests and maintaining confidence in the cooperative banking sector.
The directive’s extension to January 7, 2027, will be subject to further review by the RBI. The Chief General Manager of the RBI, Brij Raj, signed the press release numbered 2026-2027/1257, formalizing the extension and emphasizing the regulatory authority’s commitment to public interest.