Colour Merchants Co-operative Bank Ltd., Ahmedabad

RBI cancelled the licence of Colour Merchants Co-operative Bank Ltd., Ahmedabad, Gujarat. The bank has been prohibited from conducting banking business and liquidation has been initiated.

The bank must stop all banking business immediately, including accepting and repaying deposits. Depositors’ recovery will depend on liquidation proceedings and DICGC insurance coverage, up to ₹5 lakh per depositor, subject to applicable law. The licence cancellation also triggers winding-up and liquidation steps under the cooperative bank framework.

• 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 has extended its existing directions on Colour Merchants Co-operative Bank Ltd., Ahmedabad for another three months. The directive remains in force unchanged until June 25, 2025, subject to review.

The bank must continue operating under the same RBI-imposed conditions until June 25, 2025, subject to any further review or extension. The restriction continues to affect the bank’s operations and may limit normal business activities for the duration of the directive.

• 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 has extended its existing directions against Colour Merchants Co-operative Bank Ltd., Ahmedabad for another three months. The directive remains in force unchanged until close of business on March 25, 2025, subject to review.

The bank remains under the same RBI-imposed operating restrictions through March 25, 2025, subject to review. Its customers, depositors, and counterparties continue to be affected by whatever constraints are already contained in the underlying directive, with no relaxation of conditions in this release.

• 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 has extended its existing directions on Colour Merchants Co-operative Bank Ltd., Ahmedabad by another three months, until December 25, 2024. The earlier terms remain unchanged.

The bank remains subject to the same RBI operating restrictions for an additional three months, through close of business on December 25, 2024. Because the directive continues unchanged, the bank must keep complying with the existing conditions and any affected customers or counterparties remain subject to those restrictions.

• 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 has extended the All Inclusive Directions on Colour Merchants Co-operative Bank Ltd., Ahmedabad for three more months. The terms of the directive remain unchanged.

The bank remains subject to the same RBI operating restrictions for the extended period until close of business on September 25, 2024, unless further reviewed or modified by RBI. Depositors, customers, and counterparties continue to be affected by the ongoing conditions imposed under the directive.

• 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 has extended the All-Inclusive Directions on Colour Merchants Co-operative Bank Ltd., Ahmedabad for another three months. The existing conditions continue unchanged until June 25, 2024, subject to review.

The bank continues to operate under the same RBI-imposed restrictions through close of business on June 25, 2024, subject to review. Customers and counterparties remain affected by the existing operational limitations set out in the directive; no relaxation is granted in this release.

• 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 Colour Merchants Co-operative Bank Ltd., Ahmedabad under operating restrictions under Section 35A read with Section 56. The bank faces limits on lending, fresh deposits, payments, investments, and withdrawals.

The bank must operate under RBI’s restrictions until the order expires or is modified. Borrowers cannot obtain fresh or renewed credit without approval, depositors face a withdrawal cap of ₹50,000 subject to conditions, and the bank’s ability to accept fresh deposits, invest, borrow, or dispose of assets is constrained.

• 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