RBI extends restrictions on three co-operative banks to 30 January 2027
TaxByKK · Compliance News · taxbykk.com29 Oct 2026
In short
RBI has extended, for three months from the close of business on 30 October 2026 to the close of business on 30 January 2027, the directions it had placed on three co-operative banks under section 35A read with section 56 of the Banking Regulation Act, 1949. The banks are The Irinjalakuda Town Co-operative Bank (Kerala), Lokapavani Mahila Sahakari Bank Niyamitha (Mandya) and Sonpeth Nagari Sahakari Bank Maryadit (Parbhani). All other terms of each directive stay the same.
- Authority
- Reserve Bank of India
- Press releases
- 2026-2027/1404 (Irinjalakuda), 2026-2027/1400 (Lokapavani) and 2026-2027/1397 (Sonpeth), issued 28 and 29 October 2026
- Type
- Press release
- New end date
- Close of business on 30 January 2027, subject to review
- Law
- Banking Regulation Act, 1949, section 35A read with section 56
- Original directives
- All three dated 29 July 2025, first for six months to 30 January 2026
What changed
| Item | Before | Now |
|---|---|---|
| The Irinjalakuda Town Co-operative Bank Ltd., Kerala: directive period | Till close of business on 30 October 2026 | Till close of business on 30 January 2027 |
| Lokapavani Mahila Sahakari Bank Niyamitha, Mandya: directive period | Till close of business on 30 October 2026 | Till close of business on 30 January 2027 |
| Sonpeth Nagari Sahakari Bank Maryadit, Sonpeth, Parbhani: directive period | Till close of business on 30 October 2026 | Till close of business on 30 January 2027 |
RBI says the extension should not be read as meaning it is satisfied with the bank's financial position, and that the other terms of each directive remain unchanged. The press releases do not repeat what the directions restrict, such as limits on withdrawals or new loans. For those, read the bank's own notice or the original directive.
Who it applies to
- Depositors and borrowers of these three co-operative banks
- Members and directors of the banks
- CAs and advisers whose clients bank with them
What to do
- Depositors: check the bank's own notice for the limits that currently apply, and plan cash needs until 30 January 2027.
- Borrowers and account holders: keep servicing loans on the usual terms unless the bank tells you otherwise.
- Directors and managers: continue to comply with the directive and with RBI's review.
Reference
RBI press releases 2026-2027/1404 (29 October 2026), 2026-2027/1400 and 2026-2027/1397 (28 October 2026), Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949: extension of period.
Read the official PDF: Irinjalakuda Town Co-operative Bank Read the official PDF: Lokapavani Mahila Sahakari Bank Read the official PDF: Sonpeth Nagari Sahakari BankWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Until when are the RBI directions on these three co-operative banks extended?
Until the close of business on 30 January 2027, subject to review.
Does the extension mean the bank is in worse shape?
RBI says it should not by itself be read as meaning RBI is satisfied with the bank's financial position, and it does not say more than that.
Do the terms of the directions change?
No. All other terms of each directive remain unchanged.