Adarsh Mahila Nagari Sahakari Bank Maryadit, Aurangabad, Maharashtra

RBI cancelled the licence of Adarsh Mahila Nagari Sahakari Bank Maryadit, Aurangabad, Maharashtra. The bank must stop banking business immediately and liquidation proceedings were requested.

The bank is prohibited from conducting banking business, including accepting and repaying deposits, with immediate effect. Depositors may claim insurance up to ₹5 lakh per depositor from DICGC subject to applicable law, and liquidation proceedings are expected to follow.

• Section 11(1) of the Banking Regulation Act, 1949
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949
• Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949

+1 more in the case brief

RBI extended its existing directions on Adarsh Mahila Nagari Sahakari Bank Maryadit, Aurangabad, for another three months. The original terms continue unchanged.

The bank continues to operate under the same RBI-imposed conditions until the close of business on February 24, 2024, subject to review. Any depositors, borrowers, and counterparties remain subject to the operational limits contained in the underlying directions, which are not modified by this extension.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI extended its existing directions against Adarsh Mahila Nagari Sahakari Bank Maryadit, Aurangabad, Maharashtra. The same terms continue from August 25, 2023 to November 24, 2023.

The bank remains subject to the same RBI-imposed operating restrictions through November 24, 2023 unless the directive is reviewed or changed earlier. This continues to constrain the bank’s activities and affects its operations and customers accordingly.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed Adarsh Mahila Nagari Sahakari Bank, Aurangabad, under Section 35A directions. The bank faces broad restrictions on lending, deposits, liabilities, payments, and asset disposals, along with a withdrawal freeze subject to limited conditions.

The bank must operate under severe restrictions until the directions are modified or lapse after the stated six-month period. Depositors cannot freely withdraw funds from their accounts except where the directive permits set-off or other limited relief, and the bank cannot expand lending, raise fresh deposits, or undertake many normal business transactions without prior RBI approval.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949
• Section 18A of the DICGC Act (amendment) 2021