The Reserve Bank of India has extended the restrictions on Samarth Sahakari Bank Ltd., Solapur, for a further three months. The RBI directions now remain in force until the close of business on October 07, 2026. This latest extension continues a series of regulatory actions against the Maharashtra-based cooperative bank.
Key Details of the RBI Directions Extension
The RBI first issued directions against Samarth Sahakari Bank on October 06, 2025, under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Those initial directions covered a six-month period, ending April 07, 2026. The RBI then extended them once more through July 07, 2026. Now, the central bank has extended the RBI directions for another three months, subject to review.
The extension runs from the close of business on July 07, 2026, to October 07, 2026. All other terms and conditions from the original directive remain unchanged. Additionally, the RBI has clarified that this extension does not mean it is satisfied with the bank’s financial position.
What This Means for Customers and Depositors
Customers of Samarth Sahakari Bank must continue operating under the existing restrictions during this extended period. These directions limit certain banking activities to protect depositors and maintain public interest. Therefore, customers should stay informed about any further updates from the RBI.
The RBI stated that it extended the period because it is necessary in the public interest. However, the bank has not yet received a clean chit from the regulator. As a result, depositors should monitor official RBI communications closely for any changes to the directive.
Meanwhile, the cooperative banking sector in Maharashtra continues to face scrutiny from the central bank. The RBI regularly reviews such restrictions to decide whether to lift, modify, or further extend them. For example, similar extensions have been applied to other troubled cooperative banks across India in recent years.
RBI’s Regulatory Authority
The RBI issued this extension under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949. This provision gives the central bank broad powers to issue binding directions to any banking company. Consequently, Samarth Sahakari Bank must comply fully until the RBI decides otherwise.
The official press release was issued by Chief General Manager Brij Raj and carries reference number 2026-2027/588. For the full official notice, readers can visit the RBI website.
Source: RBI Press Releases
