Document title: Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Baghat Urban Co-operative Bank Limited, Solan – Extension of Period
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/594
Date: July 2, 2026
Regulatory and Policy Measures
The Reserve Bank of India, exercising powers under sub‑section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, has extended the existing directive issued to The Baghat Urban Co‑operative Bank Limited, Solan. The extension covers a further period of three months, commencing at the close of business on July 8, 2026 and ending at the close of business on October 8, 2026, and is subject to review.
The current extension builds on an earlier directive dated October 6, 2025 (Directive SML.DCBS.CRRB.No.S79/02-31-005/2025-2026) which was for six months, from October 8, 2025 to April 8, 2026. That directive was subsequently extended by Directive No. DOR.MON.D‑02/12.28.302/2026‑2027 dated April 1, 2026, which extended the period up to April 8, 2026. The RBI has now found it necessary, in the public interest, to further extend the period of operation beyond July 8, 2026.
The RBI expressly states that this extension should not be construed as an indication that it is satisfied with the financial position of the bank. All other terms and conditions of the original directive remain unchanged.
The press release is signed by the Chief General Manager, Brij Raj.
The RBI’s action underscores its ongoing supervisory role over cooperative banks and its willingness to grant time‑bound extensions where deemed necessary for public interest, while maintaining a cautious stance on the bank’s financial health.