RBI extends curbs on Konark Urban Co-op Bank, Ulhasnagar, to Jan 2027
Restrictions on The Konark Urban Co-operative Bank in Ulhasnagar, Maharashtra, in place since April 2024, will now run until January 23, 2027.
Official title: Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 – The Konark Urban Co-operative Bank Ltd., Ulhasnagar – Extension of Period · Press Release 2026-2027/1353
What happened
RBI has extended its Section 35A directions on The Konark Urban Co-operative Bank Ltd., Ulhasnagar, in Thane district, Maharashtra. The directions were issued on April 23, 2024, for six months up to October 23, 2024, so the bank has been under restrictions for about two and a half years. They were last extended up to October 23, 2026, by a directive dated July 15, 2026.
The extension is for three more months, from the close of business on October 23, 2026 to the close of business on January 23, 2027, and RBI will review it. All the other terms of the original directions stay the same. Such directions usually mean the bank cannot give new loans, take fresh deposits or make payments without RBI's written approval, and withdrawals are capped.
RBI says the extension should not be read as a sign that it is satisfied with the bank's finances. The release does not say whether the bank is improving or what will happen after January 23, 2027. Possible outcomes in such cases include lifting the curbs, a merger with another bank, or cancelling the licence.
What it means for you
If you have money in The Konark Urban Co-operative Bank, Ulhasnagar, the restrictions continue, including whatever withdrawal limit the original directions set. This release does not restate it, so ask at the branch or check the notice the bank must display. Your deposits remain covered by DICGC deposit insurance up to ₹5 lakh per depositor (principal and interest together), and if you have a loan from the bank you must keep repaying it as usual.
What it means for businesses
Shops and small firms that bank with Konark Urban Co-operative Bank still face the same limits on withdrawals and payments, so keep working accounts at another bank. Borrowers cannot get new or renewed loans from it while the directions last. There is no effect on other banks or their customers.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.