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
Case Brief
The Reserve Bank of India has further extended the Section 35A read with Section 56 directions in force against The Baghat Urban Co-operative Bank Limited, Solan. The extension runs from close of business on July 08, 2026 to close of business on October 08, 2026, subject to review. RBI also clarified that the extension does not imply satisfaction with the bank's financial position and that the other terms and conditions of the earlier directive remain unchanged.
The Reserve Bank of India, exercising powers under Section 35A read with Section 56 of the Banking Regulation Act, 1949, extended the existing Directive issued to The Baghat Urban Co-operative Bank Limited, Solan. The earlier directions, first issued on October 06, 2025 and last extended on April 01, 2026, were prolonged for a further period from close of business on July 08, 2026 to close of business on October 08, 2026. The release states that all other terms and conditions of the Directive remain unchanged and notes that the extension should not be construed as RBI being satisfied with the bank's financial position.
Severity Assessment
This is an RBI Section 35A/56 directions extension on a cooperative bank, which is treated as a broad business restriction with severity 4 regardless of whether specific caps are restated.
The bank continues to operate under the same RBI-imposed restrictions until close of business on October 08, 2026, subject to review. Customers and counterparties remain affected by whatever operational conditions were already in place under the directive, with no relaxation announced in this release.
Published as The Baghat Urban Co-operative Bank Limited, Solan
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