RBI Extends Directions on Shree Mahalaxmi Urban Co-operative Credit Bank Till March 2026
RBI extends the operational restrictions on Shree Mahalaxmi Urban Co-operative Credit Bank Ltd. until March 2026 under Section 35A.
New Delhi, December 23, 2025: The Reserve Bank of India (RBI) has extended the regulatory directions imposed on Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak, Karnataka, for a further period of three months, citing public interest considerations.
The central bank had earlier issued directions to the bank under Section 35A read with Section 56 of the Banking Regulation Act, 1949, through a directive dated September 26, 2024, initially valid for six months up to March 27, 2025. Subsequently, the validity of the directions was extended up to December 27, 2025.
In a fresh order dated December 23, 2025, the RBI announced that the directions will now remain in force from the close of business on December 27, 2025, until March 27, 2026, subject to further review.
The RBI clarified that the extension of the directions should not be construed as an indication of satisfaction with the bank’s financial position. The regulator emphasized that the action is purely taken in the public interest and for supervisory oversight.
All other terms and conditions of the original directive will remain unchanged during the extended period.
The order was issued by Brij Raj, Chief General Manager, Reserve Bank of India, as part of the central bank’s continued monitoring of cooperative banking institutions.