Garha Co-operative Bank Ltd., Guna

RBI cancelled the licence of Garha Co-operative Bank Ltd., Guna, Madhya Pradesh. The bank must stop carrying on banking business and liquidation has been sought.

The bank must cease all banking operations immediately, including accepting and repaying deposits. Depositors become eligible for DICGC insurance claims up to Rs 5 lakh per depositor, subject to law, and the bank is expected to be wound up and placed under liquidation.

• 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 its existing Section 35A directions on Garha Co-operative Bank Ltd., Guna for another three months. The bank remains subject to restrictions and ceilings on withdrawals and deposit acceptance.

Garha Co-operative Bank Ltd., Guna must continue operating under RBI-imposed restrictions on withdrawals and deposit acceptance through February 24, 2023, subject to review. Depositors are directly affected by the ceilings and restrictions, and the bank’s operating flexibility remains constrained until RBI modifies the directions or its financial position improves.

• Section 35 A 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 (AACS)

RBI extended the existing Section 35A directions on Garha Co-operative Bank Ltd., Guna, for another three months. The bank remains subject to limits on withdrawal and acceptance of deposits.

Garha Co-operative Bank Ltd. must continue operating under RBI-imposed restrictions on deposit withdrawals and deposit acceptance through November 24, 2022, unless modified earlier by RBI. Depositors and customers remain affected by the ceilings and restrictions, while the bank’s normal business continues only within those limits.

• Section 35 A 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 (AACS)

RBI further extended its existing directions on Garha Co-operative Bank Ltd., Guna for three months. The bank remains subject to restrictions on withdrawal and acceptance of deposits.

Garha Co-operative Bank Ltd., Guna must continue operating under RBI-imposed limits on deposit acceptance and withdrawals through May 24, 2022, unless modified earlier. Depositors and customers remain affected by the ceilings, and the bank’s business remains constrained while its financial position is monitored.

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

RBI extended its existing Section 35A directions on Garha Co-operative Bank Ltd., Guna for another three months. The original terms remain unchanged.

Garha Co-operative Bank Ltd., Guna remains subject to the same RBI-imposed operational restrictions for the extended period. The bank must continue complying with the existing directive until February 24, 2022, unless RBI modifies or withdraws it after review.

• 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 extended its existing Section 35A directions on Garha Co-operative Bank Ltd., Guna for another three months. The underlying restrictions remain unchanged.

Garha Co-operative Bank Ltd., Guna remains subject to the same RBI-imposed operating restrictions through November 24, 2021 unless further modified. The bank must continue complying with the existing directive, and its customers and counterparties remain affected by those restrictions during the extended period.

• 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 Garha Co-operative Bank Ltd., Guna under Section 35A directions, curbing key banking activities. Depositor withdrawals were capped at ₹50,000 per account-holder balance aggregate, subject to conditions.

Garha Co-operative Bank Ltd., Guna must operate under RBI-imposed restrictions for six months from February 24, 2021, unless modified earlier. The bank cannot freely expand lending, take fresh deposits, incur liabilities, or dispose of assets, and depositors face a withdrawal cap of ₹50,000 subject to conditions; counterparties and borrowers are affected by the limitation on new and renewed transactions.

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