RBI Tightens Grip On Lokapavani Bank – Extension signals deeper regulatory caution

The restrictions, aimed at safeguarding public interest, limit the bank’s ability to carry out normal banking operations. RBI clarified that the extension does not indicate satisfaction with the bank’s financial position.  

Key highlights  

• Restrictions extended until October 30, 2026  
• Bank barred from granting loans, making investments, or incurring liabilities without RBI approval  
• Withdrawal limits imposed on depositors  
• Extension does not imply RBI’s satisfaction with financial position  
• Directive issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949
  
  

Sources: Reserve Bank of India Press Release