Alwar Urban Co-operative Bank Ltd

RBI cancelled the licence of Alwar Urban Co-operative Bank Ltd., Alwar, Rajasthan, ending its banking business with effect from the close of business on July 05, 2018. Winding-up and liquidation proceedings were also triggered.

The bank must stop conducting banking business immediately, including accepting and repaying deposits. Liquidation proceedings will begin, and depositors will be paid according to the DICGC process up to the statutory limit of ₹1,00,000 per depositor, subject to applicable terms and conditions.

• section 11(1)
• section 22 (3) (d) read with section 56 of the Banking Regulation Act, 1949
• section 22(3)(a) read with section 56 of the Banking Regulation Act, 1949

+4 more in the case brief

RBI extended its existing Section 35A directions on Alwar Urban Co-operative Bank Ltd. for six more months. The earlier terms continue unchanged.

The bank remains under the same RBI operating restrictions for the extended period. The order continues to constrain the bank’s activities until March 07, 2018, subject to review, affecting the bank and its customers/operational counterparties under the unchanged directive terms.

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