RBI Extends Restrictions on Shimsha Sahakara Bank Niyamitha for Six More Months

The Reserve Bank of India (RBI) has extended the regulatory restrictions on Shimsha Sahakara Bank Niyamitha, located in Maddur, Mandya District, for another six months, up to November 24, 2025. These restrictions are imposed under Section 35A read with Section 56 of the Banking Regulation Act, 1949.

The bank was initially placed under RBI directions on February 23, 2023, for a period of six months, and the restrictions have since been reviewed and extended multiple times. The most recent extension was valid up to May 24, 2025, as per RBI’s directive dated November 21, 2024.

In a fresh announcement, the RBI said it is satisfied that the continuation of restrictions is necessary in the public interest, prompting the central bank to extend the validity of its directive. Accordingly, the regulatory measures will now remain in force from the close of business on May 24, 2025, until the close of business on November 24, 2025, subject to further review.

The RBI also confirmed that all other existing terms and conditions of the directive will remain unchanged.

These directions typically include restrictions on fresh deposits, withdrawals, or lending activities, aimed at safeguarding the interests of depositors and maintaining financial stability.

The extension ensures continued oversight as the RBI monitors the bank’s financial health and explores potential resolution or revival plans.