Malkapur Urban Co-operative Bank Ltd., Buldhana

RBI cancelled the licence of The Malkapur Urban Co-operative Bank Limited, Buldhana, Maharashtra. The bank must stop banking business with effect from the close of business on July 5, 2023.

The bank cannot continue banking operations, including accepting or repaying deposits. Depositors will rely on liquidation and DICGC insurance coverage, with claims payable up to the statutory ceiling of ₹5 lakh per depositor, subject to DICGC rules. The Commissioner for Cooperation/Registrar has been asked 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 directions against The Malkapur Urban Co-operative Bank Ltd., Buldhana, Maharashtra. The same terms continue to apply for three more months.

The bank remains subject to the same operational restrictions and conditions already imposed under the RBI directions. The extension keeps those restrictions in force through August 24, 2023, affecting the bank’s operations until the RBI reviews it again.

• 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 The Malkapur Urban Co-operative Bank Ltd., Buldhana, Maharashtra for another three months. The bank will continue operating under restrictions.

The bank remains subject to the existing RBI restrictions for the extended period, affecting its operations until May 24, 2023 unless reviewed earlier. Depositors and customers continue to face the restrictions embedded in the underlying directions, while the bank may continue business 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

RBI extended the existing restrictions on The Malkapur Urban Co-operative Bank Ltd. for another three months. The bank remains allowed to operate only subject to those restrictions.

The bank must continue operating under the same RBI-imposed restrictions for the next three months, subject to review. Depositors, customers, and counterparties are affected indirectly because the bank’s business continues only within the limits of the existing directions.

• 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 The Malkapur Urban Co-operative Bank Ltd., Buldhana, Maharashtra for another three months. The terms of the directions remain unchanged.

The bank remains subject to the same RBI-imposed operational restrictions for the extended period. Its activities continue to be constrained under the directions until November 24, 2022, unless modified earlier on review.

• 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 Section 35A restrictions on Malkapur Urban Co-operative Bank for three more months. The bank remains under caps on withdrawal and acceptance of deposits.

The bank must continue operating under RBI-imposed limits on deposit withdrawals and acceptance through August 24, 2022, unless modified earlier. Depositors and customers remain affected by the operating restrictions, though the bank is not licence-cancelled and continues business in restricted form.

• Section 35 A
• 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 placed Malkapur Urban Co-operative Bank Ltd., Buldhana under restrictions under Section 35A. The bank faces limits on lending, investments, fresh deposits, payments, asset disposal, and customer withdrawals.

The bank must operate under RBI-imposed restrictions and cannot freely expand lending, raise new deposits, or dispose of assets without approval. Depositors are affected by the ₹10,000 withdrawal cap, and the bank remains under these constraints until the directions expire, are modified, or are reviewed by RBI.

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