Case Brief
What Happened
The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949, to The U.P. Civil Secretariat Primary Cooperative Bank Limited, Lucknow, effective from close of business on March 11, 2026. The bank is restricted from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, making payments, entering into compromises or arrangements, and selling or otherwise disposing of assets without prior written approval of RBI, subject to the exceptions specified in the directions. RBI also directed that no withdrawal be allowed from savings bank, current, or other depositor accounts, though set-off of loans against deposits and certain essential expenditures are permitted. RBI said the directions followed supervisory concerns and the bank's lack of concrete efforts to improve functioning and protect depositors. The order is stated to remain in force for six months and is subject to review; RBI also clarified that the directions do not per se amount to cancellation of the banking licence.