Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar

RBI cancelled the licence of Jai Prakash Narayan Nagari Sahakari Bank Ltd., Basmathnagar, Maharashtra. The bank must cease banking business immediately and the liquidation process is to be initiated.

The bank can no longer conduct banking business, including accepting or repaying deposits, with immediate effect. Depositors are pushed into the liquidation/insurance process, with claims generally covered up to ₹5 lakh per depositor under DICGC rules, and the cooperative registrar is expected to initiate winding up and appoint a liquidator.

• 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 Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar for three more months. The other terms of the directive remain unchanged.

The bank must continue operating under the same RBI-imposed restrictions through April 29, 2024, subject to review. Customers and counterparties remain affected by the unchanged operational constraints during this extension 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 extended the existing directions on Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar for three more months. The earlier terms continue unchanged.

The bank remains under the same RBI-imposed operating conditions until January 29, 2024, unless reviewed earlier. Customers and counterparties continue to be subject to whatever restrictions were already in place 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 extended its existing directions on Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar for three more months. The terms of the directive remain unchanged.

The bank must continue operating under the RBI directive until October 29, 2023, subject to review. Any operational constraints already imposed by the underlying directions remain in force, affecting the bank and its customers until the directive is modified or withdrawn.

• 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 Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar under Section 35A operating restrictions. The bank’s lending, deposit-taking, payment, and withdrawal activities are constrained for six months from July 29, 2022.

The bank must operate under tight RBI-imposed constraints, limiting core balance-sheet actions and customer payouts. Depositors cannot freely withdraw balances, while the bank cannot expand lending, raise fresh liabilities, or dispose of assets except as permitted; the restrictions remain in force for six months unless modified earlier by RBI.

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