RBI Extends Restrictions on Sonpeth Nagari Sahakari Bank Maryadit Until April 30, 2026

The Reserve Bank of India (RBI) has extended its restrictions on Sonpeth Nagari Sahakari Bank Maryadit, located in Parbhani district, Maharashtra. The directive, first issued on July 29, 2025, was initially applicable for six months and set to expire on January 30, 2026.

The extension adds another three months to the operational constraints placed on the bank. All original terms and conditions remain unchanged.

RBI Directive and Initial Restrictions

RBI issued the original directive under Section 35A, read with Section 56 of the Banking Regulation Act, 1949, through Directive No. NGP.DOS.SSM 3.No.S403/15-04-395/2025-2026 dated July 29, 2025. This directive imposed restrictions on the bank’s operations for six months, ending on January 30, 2026.

Such directives are typically used to safeguard depositor interests and maintain supervisory oversight. The bank has been operating under these regulations since the directive took effect.

Extension Of Restriction Period

RBI has determined that extending the directive is necessary in the public interest. The extension is effective from the close of business on January 30, 2026, until the close of business on April 30, 2026.

The central bank has clarified that the extended directive is subject to periodic review during this period. The move ensures continuity of regulatory control while further assessment is carried out.

Status Of Bank’s Financial Position

RBI has explicitly stated that the extension should not be interpreted as an improvement in the bank’s financial condition. The regulator continues to monitor the bank to evaluate compliance and risks.

All existing restrictions imposed under the earlier directive remain fully in force. The extension ensures that depositors and stakeholders remain protected while supervisory measures continue.

Regulatory Framework and Oversight

The directive has been extended under the powers granted to RBI through Section 35A of the Banking Regulation Act, 1949. The application of Section 56 makes the provision applicable to cooperative banks such as Sonpeth Nagari Sahakari Bank Maryadit.

This framework allows RBI to intervene when necessary to maintain financial stability. The extension aligns with RBI’s established approach for handling vulnerable cooperative banks.

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Conclusion

RBI’s decision to extend the restrictions on Sonpeth Nagari Sahakari Bank Maryadit highlights the continued supervisory attention on the institution. The bank will remain under regulatory constraints until April 30, 2026.

The extension preserves the existing terms while RBI continues its review. Depositors and stakeholders remain under the protection of the regulatory measures in force.

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