RBI Extends Directions For Sri Guru Raghavendra Sahakara Bank Niyamitha

The Reserve Bank of India (RBI) has extended the operational Directions imposed on Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru. These Directions were first issued on January 02, 2020, for six months and were originally set to remain in force until July 10, 2020.

Since then, RBI has continued to review the bank’s financial condition and extended the restrictions multiple times. The latest decision adds another three‑month extension beginning February 10, 2026.

Background Of Regulatory Restrictions

The original Directive was issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949. This regulatory action came through Directive No. DOS.CO.UCB.BSD‑III.D‑2/12.23.283/2019‑20 and applied stringent operational limitations on the bank.

The aim of such Directions is typically to protect depositors and preserve financial stability when concerns arise. Over the years, RBI has revisited the bank’s financial and operational status before determining each extension.

Details Of the Latest Extension

RBI announced that the Directions will now remain in force from the close of business on February 10, 2026, to the close of business on May 10, 2026. This extension has been granted under the central bank’s authority vested in Section 35A(1) read with Section 56 of the Act.

RBI stated that the decision was taken in the public interest after evaluating the circumstances surrounding the bank. The extension remains subject to further review, indicating continued monitoring by the regulator.

Clarification On Financial Position and Regulatory Intent

The central bank clarified that the extension should not be interpreted as an indication of improvement in the bank’s financial position. RBI explicitly noted that the continuation of the Directive does not imply satisfaction with the bank’s condition.

This highlights that supervisory concerns persist despite ongoing regulatory oversight. The bank, therefore, remains under restricted operations until further orders.

Continuation Of Terms and Conditions Under Directive

All earlier conditions imposed through the original and subsequent Directions remain unchanged. These terms typically include restrictions on withdrawals, lending activities or other operational functions depending on the severity of the bank’s situation.

The unchanged terms indicate that RBI expects the bank to continue functioning under the same constraints. The regulator will reassess the situation before deciding on any modification or withdrawal of the Directions.

Read More: RBI Withdraws Directions Issued to Sikar Urban Co‑operative Bank.

Conclusion

RBI’s extension of Directions for Sri Guru Raghavendra Sahakara Bank underscores ongoing supervisory concerns over the bank’s financial condition. The three‑month extension ensures that regulatory controls remain in place while the central bank continues to monitor developments.

The unchanged terms signal that the bank must continue operating within the same restricted environment. Further actions will depend on RBI’s periodic reviews and assessment of the bank’s financial stability.

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