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

Originally imposed in April 2024 for a six-month window, the measures have now been rolled forward twice, signalling that remediation of the underlying concerns remains incomplete and that RBI is content to keep the institution under close supervisory control rather than lift restrictions. For compliance and counterparty-risk teams, the practical consequences are continuity rather than change. The bank stays in a constrained operating state: deposit withdrawals and lending activity will remain subject to the conditions set out in the operative directive, and any firm transacting with, lending to, or holding exposure to the institution should treat the extended period as the baseline for its own risk and limit frameworks.

Actions we would recommend: refresh counterparty and credit-risk files to reflect the new end-date; confirm any interbank, treasury or correspondent positions are sized to a prolonged restricted period; check onboarding and KYC records for beneficial ownership or deposit-aggregation linkages; and reassure downstream clients who may hold deposits there. Firms with co-operative bank exposure in Maharashtra should also watch for follow-on RBI notices, since repeated extensions can precede resolution, amalgamation or licence action. For most RegCanary subscribers this is a low-direct-impact item, but it is a useful signal on RBI's supervisory posture towards urban co-operative banks and should be logged in the regulatory change log for horizon-scanning.