Motiram Agrawal Jalna Merchants Co-operative Bank Limited

RBI placed Motiram Agrawal Jalna Merchants Cooperative Bank Limited, Jalna under Section 35A directions effective April 10, 2026. The bank faces restrictions on lending, deposits, payments, asset disposal, and depositor withdrawals.

From April 10, 2026, the bank operates under tight RBI-imposed restrictions: no fresh lending, investments, liabilities, or deposits without approval, and depositor withdrawals are blocked except for permitted set-offs and specified essentials. Depositors are affected immediately, though eligible depositors may claim DICGC insurance up to ₹5 lakh, and the bank must comply until the directions are modified or expire after six months, subject to review.

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

RBI imposed a penalty of Rs 6 lakh on Motiram Agrawal Jalna Merchants Co-operative Bank Limited, Jalna, for breaches of lending-related directions. The bank had sanctioned director-related loans and exceeded group exposure limits.

The bank must absorb the monetary penalty and remain mindful of continued supervisory scrutiny. The order does not itself restrict operations, but it signals that similar lending and exposure-limit breaches could trigger further regulatory action.

• Section 47A(1)(c)
• Sections 46(4)(i)
• Section 56 of the Banking Regulation Act, 1949