The Reserve Bank of India (RBI) has extended the regulatory restrictions on Sarvodaya Co-operative Bank Ltd., Mumbai for another three months, until the close of business on October 15, 2025. The extension is issued under the powers granted to RBI by Section 35A read with Section 56 of the Banking Regulation Act, 1949.
This latest action follows a series of earlier directives, the first of which was imposed on April 15, 2024, and last extended up to July 15, 2025. The new directive—DOR.MON/D-20/12.21.158/2025-26, dated July 11, 2025—confirms that all prior terms and conditions will continue unchanged.
> “The extension should not be interpreted as an indication that the Reserve Bank is satisfied with the financial health of the bank,” the RBI clarified in its notification.
A copy of the official RBI directive has been made available at the bank’s premises for public reference.
🔎 What Does This Mean for Depositors?
Under the continuing directions, the bank may be subject to:
Restrictions on withdrawals and deposit operations
Limits on granting loans and advances
Oversight of day-to-day banking activities
These measures are aimed at protecting depositor interests while the bank undergoes further regulatory scrutiny.
🗓️ Background Timeline:
April 15, 2024: RBI first places Sarvodaya Co-op Bank under directions
July 15, 2025: Previous extension expires
October 15, 2025: New deadline for current restrictions
🧾 Official Statement:
> “This extension by the Reserve Bank of India should not per se be construed to imply that RBI is satisfied with the financial position of the bank.”
