Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
31 Dec 2025
Case Brief
The Reserve Bank of India has further extended the Directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 against The Bhavani Sahakari Bank Ltd., Mumbai. The earlier directive dated July 03, 2025 had been valid until the close of business on January 04, 2026; this order extends it until the close of business on April 04, 2026, subject to review. RBI also clarifies that the extension or modification should not be taken as an indication that it is satisfied with the bank's financial position, and all other terms and conditions of the directive remain unchanged.
Why RBI Acted
The Reserve Bank of India extended the existing Directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 against The Bhavani Sahakari Bank Ltd., Mumbai. The original directive, dated July 03, 2025, had been in force up to close of business on January 04, 2026; this release extends it further from close of business on January 04, 2026 to close of business on April 04, 2026, subject to review. The release specifically says the 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 continues to operate under the same RBI-imposed restrictions until close of business on April 04, 2026, unless reviewed earlier. Customers and counterparties remain subject to whatever operational limits were already in force under the directive.
Regulatory Basis
- 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
Action Facts
- Primary Impact
- Extension
- Order Date
- 3 Jul 2025
- Effective From
- 4 Jan 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Bank