RBI extends directions on Bengaluru's Sri Guru Raghavendra Sahakara Bank to May 2027
The Reserve Bank of India has extended its directions on Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru, by six months to 10 May 2027, subject to review.
Key points
- RBI has extended its directions on Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru, for a further six months.
- The directions, due to lapse on 10 November 2026, now run to the close of business on 10 May 2027, subject to review.
- RBI said the extension does not mean it is satisfied with the bank's financial position; other terms stay unchanged.
The Reserve Bank of India (RBI) has extended its directions on Sri Guru Raghavendra Sahakara Bank Niyamitha, a co-operative bank in Bengaluru, for another six months. The directions, which were due to lapse at the close of business on 10 November 2026, will now stay in force until the close of business on 10 May 2027, subject to review. RBI announced the extension in a press release dated 6 November 2026.
What Happened
RBI first issued the directions to the bank on 2 January 2020 under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Section 35A allows RBI to give a bank binding directions in the public interest.
The original directive was issued for six months, up to the close of business on 10 July 2020. It has been extended since then, and the bank has now been under these directions for nearly seven years.
In its latest release, RBI said it is satisfied that it is necessary in the public interest to extend the directive beyond 10 November 2026. Using its powers under sub-section (1) of Section 35A, it has extended the directive for a further six months, from the close of business on 10 November 2026 to the close of business on 10 May 2027.
RBI made two further points. The extension, or any modification of the directive, should not by itself be read to mean that RBI is satisfied with the bank's financial position. And all the other terms and conditions of the directive remain unchanged.
What It Means
For depositors and borrowers of the bank, nothing changes for now. Whatever conditions the directive placed on the bank continue to apply until at least 10 May 2027, and RBI may review or modify them before then.
The release does not restate those conditions. Customers who want to know how the directive applies to their own deposits or loans should ask the bank directly and keep a written record of the reply.
RBI's statement that the extension is no sign of satisfaction with the bank's finances is a reminder that the bank remains under close supervision. Depositors should watch for further RBI releases on the bank before 10 May 2027.
Source: RBI press release
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Sources & Citations
- RBI press release — Reserve Bank of India