RBI extends directive period for Shree Mahalaxmi Urban Credit Bank
Summary
The Reserve Bank of India (RBI) has extended the period of operational directives for Shree Mahalaxmi Urban Co-operative Credit Bank Ltd. The extension is for three months, from March 27, 2026, to June 27, 2026. This action is taken in the public interest under the Banking Regulation Act, 1949.
What changed
The Reserve Bank of India (RBI) has extended the operational directives previously issued to Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak (Karnataka). The initial directive, dated September 26, 2024, was set to expire on March 27, 2025, and was subsequently extended to March 27, 2026. This latest extension, effective March 25, 2026, pushes the directive's validity for an additional three months, until June 27, 2026. The extension is exercised under Section 35A read with Section 56 of the Banking Regulation Act, 1949.
This extension signifies ongoing supervisory scrutiny of the bank's financial health and operational compliance. While the terms of the original directive remain unchanged, this action requires the bank to continue operating under these restrictions. Compliance officers should note that the RBI explicitly states this extension does not imply satisfaction with the bank's financial position, indicating potential for further regulatory action or continued monitoring.
What to do next
- Ensure continued adherence to all terms of the directive until June 27, 2026
- Monitor for any further modifications or reviews by the RBI
Source document (simplified)
Press Releases
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| Date : Mar 25, 2026 | |
| Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak (Karnataka) - Extension of Period | |
| | The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak (Karnataka) vide Directive No. CO.DOS.SED.No.S4800/12-23-151/2024-2025 dated September 26, 2024, for a period of six months up to close of business on March 27, 2025. The Reserve Bank of India is satisfied that in the public interest, it is necessary to further extend the period of operation of the Directive beyond close of business on March 27, 2026.
Accordingly, the Reserve Bank of India, in the exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby extends the Directive for a further period of three months from close of business on March 27, 2026 to close of business on June 27, 2026, subject to review.
The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank.
Other terms and conditions of the Directive under reference, shall remain unchanged.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2322 | | The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak (Karnataka) vide Directive No. CO.DOS.SED.No.S4800/12-23-151/2024-2025 dated September 26, 2024, for a period of six months up to close of business on March 27, 2025. The Reserve Bank of India is satisfied that in the public interest, it is necessary to further extend the period of operation of the Directive beyond close of business on March 27, 2026.
Accordingly, the Reserve Bank of India, in the exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby extends the Directive for a further period of three months from close of business on March 27, 2026 to close of business on June 27, 2026, subject to review.
The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank.
Other terms and conditions of the Directive under reference, shall remain unchanged.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2322 |
| The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak (Karnataka) vide Directive No. CO.DOS.SED.No.S4800/12-23-151/2024-2025 dated September 26, 2024, for a period of six months up to close of business on March 27, 2025. The Reserve Bank of India is satisfied that in the public interest, it is necessary to further extend the period of operation of the Directive beyond close of business on March 27, 2026.
Accordingly, the Reserve Bank of India, in the exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby extends the Directive for a further period of three months from close of business on March 27, 2026 to close of business on June 27, 2026, subject to review.
The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank.
Other terms and conditions of the Directive under reference, shall remain unchanged.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2322 | |
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