Case Brief
The Reserve Bank of India issued Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to The Tiruvalla Urban Co-operative Bank Ltd., Tiruvalla, Pathanamthitta. From the close of business on October 08, 2026, the bank cannot grant or renew loans, make investments, incur liabilities or accept fresh deposits, make payments, or dispose of assets except as permitted by the RBI. It has also been directed not to allow withdrawals from depositor accounts, though limited set-off against deposits and certain essential expenses are allowed. RBI stated that the action was driven by supervisory concerns, inadequate remedial efforts by the bank's management, and the need to protect depositors. The Directions are valid for six months, subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location