RBI Extends Moratorium on Bhavani Sahakari Bank, Mumbai
Summary
The Reserve Bank of India extended a regulatory directive imposing operational restrictions on The Bhavani Sahakari Bank Ltd., Mumbai for an additional three months until July 4, 2026. The extension follows prior restrictions imposed in July 2025 and a previous extension in December 2025. All existing directive terms remain unchanged.
What changed
RBI issued Directive No. DOR.MON/D-46/12-22-023/2025-2026 extending restrictions on The Bhavani Sahakari Bank Ltd., Mumbai for three months from April 4, 2026 to July 4, 2026. The extension is made under Section 35A read with Section 56 of the Banking Regulation Act, 1949, citing public interest. The original directive dates to July 3, 2025.\n\nAffected banks and depositors should note that compliance with the directive terms continues through the extended period. The Bhavani Sahakari Bank must maintain all restrictions in place. Other co-operative banks should monitor similar RBI enforcement trends as the extension underscores continued regulatory scrutiny of co-operative banking sector financial health.
Archived snapshot
Apr 2, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press Releases
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| Date : Apr 01, 2026 | |
| Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Bhavani Sahakari Bank Ltd., Mumbai – Extension of Period | |
| | The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Bhavani Sahakari Bank Ltd., Mumbai vide Directive No. CO.DOS.SED.No.S2770/12-22-023/2025-2026 dated July 03, 2025 for a period of six months up to close of business on January 04, 2026, which was last extended up to close of business on April 04, 2026, vide Directive No. DOR.MON/D-46/12-22-023/2025-2026 dated December 24, 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 April 04, 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 April 04, 2026 to close of business on July 04, 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: 2026-2027/2 | | The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Bhavani Sahakari Bank Ltd., Mumbai vide Directive No. CO.DOS.SED.No.S2770/12-22-023/2025-2026 dated July 03, 2025 for a period of six months up to close of business on January 04, 2026, which was last extended up to close of business on April 04, 2026, vide Directive No. DOR.MON/D-46/12-22-023/2025-2026 dated December 24, 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 April 04, 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 April 04, 2026 to close of business on July 04, 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: 2026-2027/2 |
| The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Bhavani Sahakari Bank Ltd., Mumbai vide Directive No. CO.DOS.SED.No.S2770/12-22-023/2025-2026 dated July 03, 2025 for a period of six months up to close of business on January 04, 2026, which was last extended up to close of business on April 04, 2026, vide Directive No. DOR.MON/D-46/12-22-023/2025-2026 dated December 24, 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 April 04, 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 April 04, 2026 to close of business on July 04, 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: 2026-2027/2 | |
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