Lucknow Urban Co-operative Bank Limited, Lucknow (U.P.)

Under Section 35A read with Section 56 of the Banking Regulation Act, 1949, RBI issued directions to Lucknow Urban Co-operative Bank Limited, Lucknow (U.P.) effective from the close of business on July 28, 2022. The bank was restricted from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and acceptance of fresh deposits, disbursing or agreeing to disburse payments, entering into compromises or arrangements, and selling/transferring/disposal of assets except as notified in the directions. Depositor withdrawals were capped at ₹30,000 across all accounts subject to conditions. RBI stated this was not a cancellation of banking licence and that the bank would continue to undertake banking business with restrictions for six months, subject to review.

The bank must immediately comply with the operating restrictions and withdrawal cap until the directions expire or are modified. Customers face limits on withdrawals and the bank cannot expand lending, accept fresh deposits, or undertake many liabilities and asset transactions without RBI approval. The restrictions remain in force for six months from the close of business on July 28, 2022, subject to review.