Bhagyodaya Friends Urban Co-operative Bank Ltd

RBI cancelled the licence of Bhagyodaya Friends Urban Co-operative Bank Limited, Warud, Maharashtra. The bank must cease banking business and liquidation proceedings are to follow.

The bank must stop all banking operations and cannot accept or repay deposits. Liquidation proceedings will be initiated, and depositors will pursue claims under the DICGC framework, with most stated to receive full amounts and others subject to the statutory insurance ceiling of ₹5 lakh. The prohibition took effect immediately for banking business, with cessation from the close of business on April 22, 2021.

• section 11(1) of the Banking Regulation Act, 1949
• 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 directions on Bhagyodaya Friends Urban Co-operative Bank Ltd. for three more months. The bank remains subject to withdrawal and deposit-acceptance ceilings.

Bhagyodaya Friends Urban Co-operative Bank Ltd. must continue operating under RBI-imposed limits on withdrawals and deposit acceptance through April 17, 2021, unless further modified. Depositors are affected by the ceilings, while the bank’s business remains constrained but not shut down.

• Section 35A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949

RBI extended its existing Section 35A directions on Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, for three more months. The bank remains subject to restrictions on withdrawals and deposit acceptance.

The bank must continue operating under RBI-imposed limits on withdrawals and deposit acceptance through January 17, 2021 unless modified earlier. This affects depositors and members of the public who may face restricted access to funds and limited deposit transactions.

• 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 (AACS)

RBI extended its Section 35A directions on Bhagyodaya Friends Urban Co-operative Bank Ltd., Warud, for two more months up to October 17, 2020. The bank remains subject to withdrawal and deposit-acceptance ceilings.

Bhagyodaya Friends Urban Co-operative Bank Ltd. must continue operating under RBI-imposed limits on withdrawals and deposit acceptance until October 17, 2020, unless modified earlier. Depositors and customers remain affected by the ceilings, and the restrictions may be reviewed or changed by RBI depending on the bank’s financial condition.

• Section 35 A of the Banking Regulation Act, 1949 (AACS)
• Section 56 of the Banking Regulation Act, 1949