RBI Extends U.P. Civil Secretariat Primary Co-operative Bank Directions to December 11, 2026

The Reserve Bank of India (RBI) has extended its directions on The U.P. Civil Secretariat Primary Co-operative Bank Ltd., Vidhan Bhawan, Lucknow, by three months. Under RBI Press Release No. 2026-2027/1075 dated 9 September 2026, the directions now apply from the close of business on 11 September 2026 to the close of business on 11 December 2026, subject to review.

The directive and its legal basis

RBI placed the bank under directions through Directive LKO.DOS.SED.No.S796/10-12-294/2025-26 dated 11 March 2026, initially for six months up to the close of business on 11 September 2026. The extension is made under Section 35A(1) read with Section 56 of the Banking Regulation Act, 1949, on RBI being satisfied that in the public interest the directive should continue. The release is signed by Brij Raj, Chief General Manager.

Only the period changes

The 9 September order extends the period of operation. The other terms and conditions of the March 2026 directive stay as they are, so this is neither a fresh set of restrictions nor a relaxation. The release does not repeat the restrictions; the operative limits on withdrawals, lending and deposits are those in the directive of 11 March 2026, and anyone dealing with the bank should read the two documents together.

RBI has added its usual caution that the extension "should not per se be construed to imply" that it is satisfied with the financial position of the bank. The 11 December date is the current end of the period, not an assurance that the directions will lapse then.

Earlier regulatory history

The bank has faced RBI action before. According to an RBI press release of 25 September 2019, the bank had been under directions since 25 September 2018, and RBI extended them for six more months from 26 September 2019 to 25 March 2020. RBI said then that the modification of the directive should not be read as an improvement or deterioration in the bank's financial position.

Earlier in 2019, RBI imposed a monetary penalty of Rs 1,00,000 on the bank, as set out in an RBI press release of 11 July 2019. The contraventions included lapses in concurrent audit of the investment portfolio, breaches of prudential limits on inter-bank gross exposure and counterparty exposure, failure to become a member of credit information companies, KYC lapses, failure to submit compliance after RBI inspection, and making donations despite accumulated losses in the previous year. The penalty followed a show cause notice, a written reply and a personal hearing.

The March 2026 directive is a fresh action, separate from the 2018 directions.

What professionals should do

• Update compliance calendars and engagement files with the new end date of 11 December 2026.
• For audit or advisory work involving the bank, keep the 9 September 2026 release and the 11 March 2026 directive on file as evidence of its continuing supervisory status.
• Check the operative directive before any transaction that depends on the bank's ability to repay deposits or lend.
• Watch for RBI's next order on or before 11 December 2026.

Updated on 28 September 2026: added the press release number and signatory, and the bank's earlier RBI directions (2018 to 2020) and 2019 penalty from RBI's own releases.