RBI Extends Critical Directive Period for Cooperative Banks; Sadbhav Bank Granted Three-Month Extension

RBI Extends Critical Directive Period for Cooperative Banks; Sadbhav Bank Granted Three-Month Extension​

Reserve Bank Extends Operation Period under Banking Regulation Act, 1949​

The Reserve Bank of India (RBI) has granted a further extension regarding compliance requirements under Section 35A read with Section 56 of the Banking Regulation Act, 1949. This decision specifically pertains to Sadbhav Nagrik Sahakari Bank Maryadit located in Chhatarpur, Madhya Pradesh.

The RBI issued the original Directions to the bank on October 06, 2025, which specified a six-month period for adherence to the mandated requirements. A previous extension was granted by the central bank, pushing the deadline up to July 07, 2026.

Details of the Three-Month Extension​

The Reserve Bank of India determined that extending the operational period is necessary in the public interest. Accordingly, the RBI has now extended the Directive for an additional three months.

This extension brings the compliance deadline from the previous target date of July 07, 2026, to the new final date of October 07, 2026. The directive was issued on July 6, 2026, by Chief General Manager Brij Raj.

Regulatory Scope and Conditions Remain Unchanged​

The directions concerning Sadbhav Nagrik Sahakari Bank remain subject to certain critical conditions. All other terms and conditions stipulated in the original Directive issued under Section 35A read with Section 56 will remain unaltered.

It is crucial for stakeholders to note that this extension by the RBI must not be construed to imply satisfaction regarding the bank’s financial position. The purpose of the RBI's action remains strictly regulatory, requiring continued compliance from the institution.