RBI Extends Restrictions on Sarvodaya Co-operative Bank till April 15, 2026

The Reserve Bank of India (RBI) has announced an extension of its existing restrictions on Sarvodaya Co-operative Bank Ltd., Mumbai. The bank was initially placed under Directions on April 15, 2024, for 6 months, which were subsequently extended multiple times.

The latest extension, notified on January 09, 2026, will keep the restrictions in force from the close of business on January 15, 2026, until April 15, 2026. RBI clarified that this extension should not be construed as a sign of satisfaction with the bank’s financial position.

RBI Directive and Legal Basis

The extension has been issued under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949. The directive, numbered DOR.MON/D-51/12.21.158/2025-26 specifies that all previous terms and conditions remain unchanged.

The bank continues to operate under restrictions that limit its ability to conduct certain banking activities without prior RBI approval. A copy of the directive has been displayed at the bank’s premises for public reference.

Timeline Of Restrictions

Sarvodaya Co-operative Bank was first placed under Directions on April 15, 2024, for 6 months, ending October 15, 2024. These restrictions were modified and extended periodically, with the last extension valid until January 15, 2026.

The current extension adds another three months, pushing the compliance period to April 15, 2026. RBI has stated that the situation will remain under review during this extended period.

Impact On Banking Operations

Under the Directions, the bank faces limitations on withdrawals, lending, and other financial transactions. Customers may experience restrictions on accessing funds beyond specified limits, as per the RBI’s earlier notifications.

The bank is required to seek RBI approval for any major operational changes or financial commitments. These measures aim to safeguard depositor interests while the bank addresses its financial challenges.

Regulatory Clarification

RBI has emphasised that the extension of Directions does not indicate improvement in the bank’s financial health. The regulator continues to monitor the situation closely and may consider further actions based on compliance and recovery progress.

The public has been advised to refer to official notifications displayed at the bank’s premises for accurate information. RBI’s stance underscores its commitment to maintaining stability and protecting depositors in the co-operative banking sector.

Read More: RBI Notifies Foreign Exchange Management (Guarantees) Regulations, 2026. 

Conclusion

The Reserve Bank of India has extended restrictions on Sarvodaya Co-operative Bank Ltd. until April 15, 2026, maintaining all previous conditions. The move follows multiple extensions since April 2024 and reflects ongoing regulatory oversight.

Customers and stakeholders are advised to stay informed through official channels as the bank works under RBI’s supervision. The extension remains subject to review, with no assurance of the bank’s financial soundness implied.

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