Sadbhav Nagrik Sahakari Bank Maryadit

RBI has extended its existing Section 35A/Section 56 directions against Sadbhav Nagrik Sahakari Bank Maryadit, Chhatarpur, for another three months. The restrictions now run until the close of business on October 07, 2026.

The bank remains subject to the same RBI operating restrictions for an additional three months, continuing any limits already imposed under the directive. The extension affects the bank’s operations and its customers, including depositors and counterparties, until October 07, 2026, unless the directive is revised or withdrawn earlier.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended its existing Section 35A/56 directions on Sadbhav Nagrik Sahakari Bank Maryadit, Chhatarpur, by three months. The restrictions remain unchanged and continue through July 07, 2026, subject to review.

The bank remains subject to the same RBI-imposed operating conditions through July 07, 2026, unless the directive is changed again on review. This continues to affect the bank's operations and, indirectly, its customers and counterparties under the existing restrictions.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed Sadbhav Nagrik Sahakari Bank Maryadit, Chhatarpur, under Section 35A directions restricting core banking activities. The bank can continue operating only under tight conditions, including a ₹5,000 withdrawal cap per depositor account.

The bank must operate under RBI-imposed restrictions, limiting lending, deposit-taking, liability creation, and asset disposal. Depositors can withdraw only up to ₹5,000 per account as specified, while the bank remains under RBI monitoring for possible modification of the directions. This affects customers, depositors, and the bank's management until the order is reviewed or amended.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949

RBI imposed a monetary penalty of ₹1 lakh on Sadbhav Nagarik Sahakari Bank Maryadit, Chhatarpur. The bank was found non-compliant with SAF instructions, including failure to reduce the single borrower exposure limit for fresh lending.

The bank must absorb the monetary penalty and remain exposed to any further RBI action that may arise from the same compliance deficiencies. The release does not itself impose a new operational restriction, but it underscores RBI’s expectation that the bank follow SAF-linked lending exposure limits going forward.

• section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949