Deccan Urban Co-operative Bank Limited, Vijayapura, Karnataka

RBI cancelled the licence of Deccan Urban Co-operative Bank Ltd., Vijayapur, Karnataka. The bank must cease banking business immediately and is being moved toward winding up and liquidation.

The bank can no longer conduct banking business, including accepting or repaying deposits, with immediate effect. The registrar is expected to initiate winding up and appoint a liquidator, and depositors will have to rely on DICGC insurance claims up to the statutory ceiling of ₹5 lakh.

• 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

+2 more in the case brief

RBI extended the existing directions on Deccan Urban Co-operative Bank Limited, Vijayapura, Karnataka for another three months. The prior terms continue unchanged.

The bank remains subject to the same RBI operating restrictions for the extended period, with no relaxation of the prior conditions. The directive continues to govern the bank’s operations until August 19, 2022, subject to review, affecting the bank and its customers under the existing terms.

• 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 Section 35A directions against Deccan Urban Co-operative Bank Limited, Vijayapura, Karnataka. The directive will continue for three more months, unchanged.

The bank remains subject to the same RBI operating restrictions for the extended period, from February 20, 2022 to May 19, 2022. Its business operations must continue in accordance with the unchanged directive until the RBI reviews or modifies it.

• 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 the All Inclusive Directions applicable to Deccan Urban Co-operative Bank Limited, Vijayapura, Karnataka. The same restrictions continue for six more months.

Deccan Urban Co-operative Bank Limited remains subject to the existing RBI operational restrictions for an additional six months, subject to review. The bank's activities continue to be constrained under the directive, with no change to the earlier conditions affecting its operations and customers.

• 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

RBI placed Deccan Urban Co-operative Bank Ltd., Vijayapur under Section 35A restrictions. The bank faces tight limits on lending, deposits, payments, and withdrawals.

The bank can continue operating only under RBI-imposed restrictions. Depositors face withdrawal limits, while the bank cannot freely expand lending, raise liabilities, accept fresh deposits, or dispose of assets unless RBI approves or the directive otherwise permits.

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

RBI imposed a ₹1 lakh penalty on The Deccan Urban Co-operative Bank Limited, Vijayapura. The action was for violating directions that prohibit loans and advances to directors.

The bank must absorb the monetary penalty and ensure future compliance with RBI’s restrictions on lending to directors and their relatives. The action does not state any additional operational restriction, but it highlights compliance expectations for the bank’s governance and lending controls.

• Section 47 A (1) (c)
• Section 46 (4) (i)
• Section 56 of the Banking Regulation Act, 1949