Banking and Credit
The Reserve Bank of India initially issued a directive under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to Loknete R.D. (Appa) Kshirsagar Sahakari Bank Ltd., Niphad, Tal. Niphad, Dist. Nashik on 15 December 2025. The directive was to remain in force for six months, expiring at the close of business on 16 June 2026. The RBI has now determined that, in the public interest, it is necessary to extend the period of operation of the directive beyond the original expiry date.
Regulatory and Policy Measures
Exercising its powers under sub‑section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, the RBI extends the directive for a further three months, from the close of business on 16 June 2026 to the close of business on 16 September 2026, subject to review. All other terms and conditions of the original directive remain unchanged. The RBI explicitly states that this extension should not be construed as an indication that it is satisfied with the financial position of the bank.
The extension is communicated through Press Release 2026‑2027/422, signed by the Chief General Manager, Brij Raj.
This extension reflects the RBI’s ongoing supervisory oversight of the cooperative bank and underscores its commitment to ensuring stability in the banking sector while maintaining regulatory prudence.