Case brief
RBI has withdrawn the Section 35A/56 Directions applicable to Sikar Urban Co-operative Bank Ltd, Sikar. The withdrawal takes effect from close of business on February 04, 2026.
Impact
The bank is restored from the RBI directions regime effective February 04, 2026, so the operational restrictions under those directions cease from that date. Depositors, customers, and counterparties are no longer subject to the specific constraints imposed by those directions after the withdrawal becomes effective.
Why RBI acted
Regulatory basis
- Section 35A read with Section 56 of the Banking Regulation Act, 1949
- sub-section (2) of Section 35A read with Section 56 of the Banking Regulation Act, 1949