Gokul Co-operative Urban Bank Ltd., Secunderabad

RBI cancelled the licence of Gokul Co-operative Urban Bank Ltd., Secunderabad. The bank can no longer transact banking business, including accepting or repaying deposits.

The bank must stop all banking operations forthwith. Depositors can no longer place new deposits or receive repayments through normal banking business, and the institution is effectively barred from conducting banking activities unless any separate legal/administrative remedy is granted.

• Section 22 of the Banking Regulation Act, 1949
• Section 56 of Banking Regulation Act, 1949
• Section 5(b) of the Banking Regulation Act, 1949

RBI has extended the existing directions on Gokul Co-operative Urban Bank Ltd., Secunderabad until June 30, 2017. The directive continues unchanged.

The bank remains subject to the existing RBI directions through June 30, 2017, with no change to the underlying restrictions. The operational impact continues for the bank and, depending on the original directive, may affect customers/members until RBI reviews the order again.

• Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

RBI extended the existing Section 35A directives on Gokul Co-operative Urban Bank Ltd., Secunderabad for another six months till April 04, 2017. The other terms of the directive remained unchanged.

The bank must continue to operate under the same RBI-imposed directives until April 04, 2017, subject to review. Customers and counterparties remain affected by the unchanged operational restrictions during the extended period.

• Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

RBI placed Gokul Co-operative Urban Bank Ltd., Secunderabad under Section 35A directions with operating restrictions. The bank faces caps on withdrawals and cannot undertake major lending, deposit, investment, or liability activities without RBI approval.

The bank must continue operations only within RBI-imposed limits until the directions are modified or withdrawn. Customers face withdrawal restrictions, while the bank cannot freely extend credit, take deposits, raise liabilities, or dispose of assets without prior RBI approval. The restrictions are effective from the close of business on April 04, 2016 for six months unless reviewed earlier.

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