Abhyudaya Co-operative Bank Ltd

RBI extended the supersession of the Board of Directors of Abhyudaya Cooperative Bank Ltd., Mumbai for one more year. The administrator and committee of advisors will continue to manage the bank.

The bank remains under RBI-appointed administration instead of board governance for another year. Strategic and operational oversight continues to rest with the Administrator and Committee of Advisors, while the superseded board does not resume control until the extension ends or RBI issues a further order.

• section 36AAA read with section 56 of the Banking Regulation Act, 1949
• sub-section (1) of section 36AAA read with section 56 of the Banking Regulation Act, 1949

RBI has extended the supersession of Abhyudaya Cooperative Bank Ltd., Mumbai’s Board of Directors for another 12 months. The bank will continue under an administrator and advisory committee.

The bank remains under administrator-led management rather than its elected board, and this arrangement continues from November 24, 2024 for another 12 months. Governance and strategic control stay with the Administrator and Committee of Advisors, affecting the bank’s management and oversight structure.

• Section 36AAA read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies)
• sub-Section (1) of Section 36AAA read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies)

RBI superseded the Board of Directors of Abhyudaya Cooperative Bank Ltd., Mumbai, for 12 months and appointed an Administrator. The bank may continue normal banking activities under the Administrator’s guidance.

The bank’s board has been removed for 12 months, and an Administrator now controls management with advisory support. Customers can continue normal banking activities, but governance and oversight at the bank will be under RBI-appointed supervision during the period.

• Section 36 AAA read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

RBI imposed a penalty of Rs 58 lakh on Abhyudaya Co-operative Bank Limited, Mumbai. The bank was found non-compliant with directions on deposits with other banks, fraud reporting, IRAC norms, and management of advances.

The bank must absorb the financial penalty and address the compliance gaps identified by RBI. The findings highlight ongoing expectations around deposit placement limits, timely fraud reporting, proper asset classification, and monitoring end-use of advances, which affect the bank’s internal controls and regulatory compliance obligations.

• section 47 A (1) (c) read with sections 46(4)(i) and 56 of Banking Regulation Act, 1949 (BR Act)

RBI penalised Abhyudaya Co-operative Bank Ltd., Mumbai, by Rs 5 lakh for KYC/AML violations and improper handling of an account at its Vashi branch. The regulator also cited an earlier KYC non-compliance instance involving RTGS transactions.

The bank must absorb the monetary penalty and address the compliance gaps highlighted by RBI, especially around KYC/AML controls, account monitoring, and preservation of audit trails. The action has no stated operational restriction, but it signals heightened supervisory scrutiny over the bank's compliance practices.

• Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies)