RBI Extends Directions on Amanath Co-operative Bank Until December 12, 2026

The Reserve Bank of India (RBI) has extended its directions on The Amanath Co-operative Bank Limited, Bangalore, by three more months. Under RBI Press Release No. 2026-2027/1065 dated 8 September 2026, the directions now run from the close of business on 12 September 2026 to the close of business on 12 December 2026, subject to review.

The directive being extended

The bank was placed under directions through Directive CO.DOS.SED.No.S1931/12-23-001/2024-2025 dated 12 June 2024. RBI first imposed them for six months, up to the close of business on 12 December 2024, and has extended them from time to time since. With the latest order, the bank will have been under these directions for 30 months by 12 December 2026.

RBI acted under Section 35A(1) read with Section 56 of the Banking Regulation Act, 1949. The release is signed by Brij Raj, Chief General Manager.

Terms unchanged

The 8 September release states that all other terms and conditions of the existing directive remain unchanged. The order is therefore a continuation of the current regime, not a new set of directions and not a relaxation. The release does not restate the restrictions themselves; for the exact limits on withdrawals, lending or fresh deposits, depositors and counterparties must refer to the directive of 12 June 2024.

RBI has also repeated its standard caution: "the extension and/or modification by the Reserve Bank of India should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank."

Second spell under RBI directions

This is not the first time the bank has operated under RBI curbs. RBI had placed it under all-inclusive directions from 1 April 2013. Those directions were extended repeatedly; a RBI press release of 4 July 2019 extended them to 4 January 2020 and noted that the bank "will continue to undertake banking business with restrictions till its financial position improves" and that the directions should not be read as cancellation of its banking licence. RBI then withdrew those directions on 3 January 2020, saying it was satisfied that this was necessary in the public interest. The current directions from June 2024 are a fresh imposition, four and a half years later.

What professionals should check

• Auditors: the extension is a relevant event for going-concern assessment and for disclosure of regulatory restrictions in the bank's financial statements.
• Businesses and clients with accounts or deposits: treat the June 2024 directive as operative until 12 December 2026 and plan payments accordingly.
• Lenders and counterparties: confirm the scope of the directive before any transaction that depends on the bank's ability to pay out or lend.

The next decision point is 12 December 2026, when RBI may extend, modify or withdraw the directions.

Updated on 28 September 2026: added the press release number and signatory, stated the legal provisions, and added the bank's earlier period under RBI directions from 2013 to 2020 with RBI's own releases.