Motiram Agrawal Jalna Merchants Co-operative Bank Limited

RBI has extended the Section 35A directions on Motiram Agrawal Jalna Merchants Co-operative Bank Ltd, Jalna for another three months. The existing terms remain unchanged.

The bank must continue complying with the RBI directive through close of business on January 10, 2027, unless reviewed/modified earlier. The restriction continues to affect the bank’s operations and governance, while depositors and counterparties remain subject to the existing regulatory conditions until the order is changed or withdrawn.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 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