Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
1 Oct 2026
Case Brief
The Reserve Bank of India extended the existing Section 35A read with Section 56 directions applicable to Innovative Co-operative Urban Bank Limited, New Delhi. The original directive was issued on July 03, 2025, later extended on June 29, 2026, and has now been further extended from the close of business on October 04, 2026 until the close of business on January 04, 2027, subject to review. The RBI clarified that the extension does not imply satisfaction with the bank's financial position and that all other terms and conditions of the directive remain unchanged.
Why RBI Acted
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 Innovative Co-operative Urban Bank Limited, New Delhi. The directive, originally issued on July 03, 2025 and last extended on June 29, 2026, was continued from close of business on October 04, 2026 to close of business on January 04, 2027, subject to review. The release states that all other terms and conditions of the directive remain unchanged and that the extension should not be construed as satisfaction with the bank's financial position.
Operating Impact
The bank remains subject to the same RBI-imposed operating restrictions through January 04, 2027, with no relaxation in conditions. Customers and counterparties continue to be affected by the ongoing directive until it is reviewed or changed by RBI.
Regulatory Basis
- Section 35A read with Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 3 Jul 2025
- Effective From
- 4 Oct 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank