The Reserve Bank of India has extended its supervisory directions over The Suri Friends’ Union Co-operative Bank Ltd., Suri (West Bengal) for a further three months — from the close of business on 22 October 2026 to the close of business on 22 January 2027, subject to review. The extension, issued through RBI Press Release 2026-2027/1367, keeps every existing restriction in place, including the ₹50,000 per-depositor withdrawal cap, and RBI has expressly cautioned that the extension should not be read as a clean chit on the bank’s financial health.
Key change
RBI extends Section 35A directions on Suri Friends’ Union Co-operative Bank to 22 January 2027 — the ₹50,000 withdrawal cap and all other terms continue unchanged.
What happened
On 22 October 2026, the RBI announced that it was extending the Directive it had originally issued to The Suri Friends’ Union Co-operative Bank Ltd. on 21 July 2022 (Directive No. CO.DOS.SED.No.S2574/12-07-005/2022-23). That directive was imposed under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (the provisions as applicable to co-operative societies) and first ran for six months, up to the close of business on 22 January 2023.
Since then, the directive has been rolled forward in successive tranches. It was last extended up to the close of business on 22 October 2026 vide Directive No. DOR.MON.D-25/12.29.046/2026-27 dated 14 July 2026. With that tranche expiring, the RBI says it is satisfied that, in the public interest, the directions must continue — so it has now stretched them for a further three months, to the close of business on 22 January 2027.
The press release carries one explicit warning: the extension “should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank.” All other terms and conditions of the directive remain exactly as they were.
The extension timeline: old vs new
This is at least the sixth roll-forward of the same 2022 directive. The official RBI trail reads:
The bank has therefore been operating under RBI directions for well over four years now. That is not unusual in itself: the RBI routinely extends such directives in three- or six-month tranches while a weak co-operative bank works through a recovery plan, and it also withdraws them when a bank’s position improves — it withdrew directions on Thodupuzha Urban Co-operative Bank Ltd. (Kerala) on 20 January 2025 and on Defence Accounts Co-operative Bank Ltd. (Pune) on 16 January 2025.
What the directions actually restrict
The 22 October press release extends the directive without restating its contents, but the original 21 July 2022 RBI press release — which the extension expressly builds on — sets out the restrictions in full. From the close of business on 22 July 2022, the bank has not been permitted, without prior RBI approval in writing, to:
- grant or renew any loans and advances;
- make any investment;
- incur any liability, including borrowing funds and accepting fresh deposits;
- disburse or agree to disburse any payment, whether in discharge of its liabilities and obligations or otherwise;
- enter into any compromise or arrangement; or
- sell, transfer or otherwise dispose of any of its properties or assets — except as notified in the RBI direction itself, a copy of which is displayed on the bank’s premises for perusal by the public.
₹50,000 withdrawal cap
A sum not exceeding ₹50,000 of the total balance across all savings bank, current accounts or any other account of a depositor may be allowed to be withdrawn, subject to the conditions stated in the RBI directions. This cap continues unchanged through 22 January 2027.
Who is affected
Depositors of the Suri bank are the most directly affected: the ₹50,000 aggregate withdrawal ceiling stays in force for three more months, so anyone with a larger balance still cannot access the excess for now. The restriction bites hardest in Suri town and the surrounding Birbhum district of West Bengal, where the bank’s branches and customer base are concentrated.
Borrowers continue to face a bank that cannot grant fresh loans or renew existing advances without the RBI’s written sign-off — credit from this bank remains effectively frozen. Prospective depositors should note that the bank cannot accept fresh deposits under the directions at all.
It is worth repeating what the RBI itself said in 2022: the directions should not per se be construed as cancellation of the bank’s licence, and the bank continues to undertake banking business with restrictions until its financial position improves. The October 2026 press release repeats the same assurance in substance, while adding the explicit caution that the extension does not mean the RBI is satisfied with the bank’s finances.
What depositors should do now
- Plan around the cap, not against it. If your aggregate balance exceeds ₹50,000, treat the excess as locked in until at least 22 January 2027. Do not commit the excess mentally to payments due before that date.
- Check your balances across accounts. The ₹50,000 ceiling applies to the total balance across all your savings, current and other accounts with the bank — not per account.
- Keep KYC current. Banks under directions periodically ask depositors to update KYC; pending KYC is the most common reason a permitted withdrawal gets held up.
- Watch the January 2027 review. The directive is “subject to review” — the RBI may extend it again, modify it, or, if the bank’s position improves, withdraw it as it did for two other co-operative banks in January 2025.
- Know the deposit-insurance backstop. Co-operative bank deposits are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) framework — up to ₹5,00,000 per depositor per bank — as a separate statutory scheme. (General framework; not stated in this RBI press release.)
Frequently asked questions
Has the bank’s licence been cancelled?
No. The RBI has said expressly — in the original 2022 release and by keeping the directions in force — that the issue of directions should not per se be construed as cancellation of the banking licence. The bank continues to operate, but with the stated restrictions.
How much can I withdraw?
Up to ₹50,000 in aggregate, across all your savings, current and other accounts with the bank, subject to the conditions in the RBI directions. Amounts above that cannot be withdrawn while the directive is in force.
What does “Section 35A” mean?
Section 35A of the Banking Regulation Act, 1949 empowers the RBI to issue directions to banking companies in the public interest or to prevent their affairs being conducted in a manner detrimental to depositors. Section 56 extends these provisions to co-operative societies carrying on banking business.
Can the bank give me a new loan or accept my fixed deposit?
Not without the RBI’s prior written approval. The directions bar the bank from granting or renewing loans and advances and from accepting fresh deposits except as notified in the direction itself.
What happens on 22 January 2027?
The extension is “subject to review.” The RBI will decide around that date whether to extend the directions again, modify them, or withdraw them if the bank’s financial position has improved sufficiently.
Does the extension mean the bank is safe now?
No — the RBI says the opposite explicitly: the extension “should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank.”
Sources
- RBI Press Release 2026-2027/1367 — Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949: The Suri Friends’ Union Co-operative Bank Ltd., Suri, West Bengal — Extension of period (22 October 2026)
- RBI Press Release — Original directions to The Suri Friends’ Union Co-operative Bank Ltd. (21 July 2022)
