RBI Extends Directive for Indian Mercantile Co-operative Bank Limited Until April 27, 2026

The RBI has extended the directive issued to Indian Mercantile Co-operative Bank Limited, Lucknow, originally imposed on January 28, 2022. The directive was first applied for six months up to the close of business on July 27, 2022, and has since been modified several times.

The most recent extension was valid until the close of business on January 27, 2026, under the order dated October 14, 2025. The central bank has now determined that continuing the restrictions is necessary in the public interest.

RBI’s Decision to Extend the Directive

The decision to prolong the directive is based on the RBI’s view that further oversight is required. The extension was made under the powers granted by Section 35A read with Section 56 of the Banking Regulation Act, 1949.

The new extension takes effect immediately after the close of business on January 27, 2026. The extended directive will now remain in force until the close of business on April 27, 2026, subject to periodic review.

Legal Basis and Scope of The Directive

The RBI issued the original directive under Section 35A, read with Section 56, enabling it to impose restrictions on the bank’s operations. These provisions allow the central bank to act when it considers such measures necessary in the public interest or to protect depositors.

The extension reflects the ongoing assessment that the regulatory framework should remain in place. The order ensures continuity of supervision until the new expiry date.

Reasoning Behind the Continued Oversight

The central bank has clarified that an extension of this nature does not imply any improvement in the bank’s financial position. The purpose of the directive is to maintain oversight and ensure stability while the institution remains under review.

This step indicates that the regulator is taking a cautious approach with respect to the bank’s operations. The period of extension also allows for further monitoring of developments.

Read More: Finance Ministry to Review RRB Performance.

Conclusion

The RBI’s extension of the directive for the Indian Mercantile Co-operative Bank Limited reflects a continued need for regulatory oversight. The directive will now remain effective until the close of business on April 27, 2026.

The extension underscores the central bank’s cautious approach in assessing financial and operational conditions at the institution. All existing restrictions will continue unchanged during the extended period.

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