What changed
RBI extended the validity of its directive (originally issued October 6, 2025, last extended April 1, 2026) for an additional 3 months, from July 8, 2026 to October 8, 2026. The extension was granted under Section 35A read with Section 56 of the Banking Regulation Act, 1949. All other terms and conditions of the directive remain unchanged.
What it means for you
The bank continues to operate under RBI-imposed restrictions as per the directive. Lenders and counterparties should note that the bank's financial position is still under regulatory scrutiny. The extension signals ongoing concerns, though RBI clarifies this is not an endorsement of its health.
What you must do
- Review your exposure to The Baghat Urban Co-operative Bank and assess credit risk.
- Monitor RBI updates for any further changes to the directive's terms.
- Advise depositors and stakeholders about the continued restrictions.
- Update internal risk assessments for co-operative bank counterparties.
Who it affects
The Baghat Urban Co-operative Bank Limited, Solan, Depositors and creditors of the bank, Lenders and financial institutions with exposure to this bank
Why did RBI extend the directive?
RBI extended the directive in public interest, as it is satisfied that continued restrictions are necessary. The extension does not mean RBI endorses the bank's financial health.
What restrictions are in place?
The directive's terms remain unchanged. Specific restrictions are not detailed in this press release.
How long is the extension valid?
The extension runs from July 8, 2026 to October 8, 2026, subject to review.