The RBI extended regulatory restrictions on The Industrial Co-operative Bank Ltd., Guwahati, until October 4, 2026, under Section 35A of the Banking Regulation Act. The bank remains under enhanced monitoring.
RBI Extends Curbs on Guwahati Co-op Bank
The Reserve Bank of India has extended the regulatory directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies), on The Industrial Co-operative Bank Ltd., Guwahati, up to October 4, 2026. The extension follows earlier directives dated July 3, 2025, and a previous extension in June 2026.
Section 35A empowers the RBI to issue directions to co-operative banks to ensure financial stability and depositor protection. The restrictions typically include limits on withdrawals, lending, and branching activities. The repeated extension indicates ongoing supervisory concerns regarding the bank’s financial health or governance.
Practitioners advising co-operative banks must scrutinize such directives for compliance obligations and potential triggers for reconstruction or amalgamation under the Banking Regulation Act. Depositors and creditors should note that while accounts remain protected up to applicable limits, access to funds may be restricted.
Citations
- Banking Regulation Act, 1949 (as Applicable to Co-operative Societies) – Sections 35A, 56
