The Reserve Bank of India (RBI) has extended the restrictions imposed on Ajantha Urban Co-operative Bank Maryadit, Aurangabad, Maharashtra, for an additional three months. The directive, initially issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, will now remain in force until the close of business on May 28, 2025.
The central bank had first placed restrictions on the cooperative bank on August 28, 2023, for a period of six months, which was subsequently extended multiple times, with the last extension valid until February 28, 2025. The latest extension has been granted in the interest of the public, according to an official statement from the RBI.
While the specific reasons for the continued restrictions were not disclosed, such directives typically indicate financial stress, regulatory concerns, or governance issues within the bank. The RBI has assured that all other terms and conditions of the directive remain unchanged.
The extension means that the bank will continue to operate under regulatory constraints, which may include limits on withdrawals, lending restrictions, or other supervisory measures. The RBI is expected to review the bank’s financial health before deciding on further action after May 28, 2025.
Customers and stakeholders of Ajantha Urban Co-operative Bank will need to stay informed about any further developments regarding the bank’s operations.