Suri Friends’ Union Co-operative Bank: RBI Extends Curbs to January 2027

Depositors of Suri Friends’ Union Co-operative Bank Ltd in Birbhum district, West Bengal, will live with RBI’s restrictions for at least three more months. RBI said on Thursday, 22 October 2026, that it has extended its Section 35A directions on the bank until the close of business on 22 January 2027, subject to review. The curbs were first imposed in July 2022.

Suri Friends’ Union Co-operative Bank: what RBI announced

RBI says it is “satisfied that in the public interest” the extension is necessary, and that 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.”

What this means for depositors

The extension keeps the existing terms in place, including any limits on withdrawals and on new loans and deposits. Today’s release does not restate those limits, so check the original directions displayed at the branch or ask the bank in writing what you can withdraw.

The bank’s licence has not been cancelled. It continues to operate under restrictions. By January 2027, the curbs will have run for four and a half years.

Why curbs can run for years

RBI does not explain individual extensions. In general, Section 35A directions on a co-operative bank end in one of three ways: the bank’s finances improve and curbs are lifted, it merges with a stronger bank, or RBI cancels its licence and it is liquidated. Repeated short extensions usually mean none of these has happened yet. That is our general reading, not a statement by RBI about this bank.

Your deposit insurance

Deposits in co-operative banks are insured by DICGC, the RBI-owned deposit insurer, up to ₹5 lakh per depositor in the same capacity and right. Under the DICGC Act, depositors of a bank under such directions can be paid their insured amount within a set period of the directions being imposed, through a claim process run by the bank. Our DICGC guide explains how the ₹5 lakh is counted and how claims work. If you have not yet been paid an insured amount, ask the branch about the status of your claim and keep the reply.

Practical steps for depositors

• Keep salary, pension and auto-debits in an account at another bank.
• Collect your passbook, FD receipts and KYC documents in one place.
• Update nominee details so a claim is simple for your family.
• Do not pay anyone who offers to get your money out faster.

Our guide to co-operative bank withdrawal limits covers how such curbs usually work, and this week’s Puducherry Co-operative Urban Bank report shows a fresh case.

FAQs

How long will the restrictions last?

Until the close of business on 22 January 2027, subject to review.

Has the bank’s licence been cancelled?

No. The extension is not a licence cancellation.

Takeaway: RBI has extended curbs on Suri Friends’ Union Co-operative Bank to 22 January 2027. Depositors should confirm their withdrawal limit with the bank, track any DICGC claim, and keep day-to-day banking elsewhere.