Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra

RBI cancelled the licence of Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra. The bank must stop banking business immediately and will be taken up for winding up and liquidation.

The bank must cease all banking operations immediately, including accepting and repaying deposits. Depositors’ claims will be handled through liquidation, with DICGC insurance coverage up to ₹5 lakh per depositor subject to applicable law, and most depositors are expected to receive full insured amounts.

• 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 the Section 35A directions on Nagar Urban Co-operative Bank Ltd., Ahmednagar until December 06, 2023. The existing terms of the directions remain unchanged.

The bank continues to operate subject to the same RBI-imposed restrictions until December 06, 2023, unless further modified. Customers, depositors, and other stakeholders remain affected by the ongoing directions, and the bank remains under regulatory review.

• Section 35A
• Section 56
• sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949

RBI extended the existing Section 35A directions on Nagar Urban Co-operative Bank Ltd., Ahmednagar until September 06, 2023. The terms remain unchanged.

The bank must continue operating under the same RBI-imposed conditions until September 06, 2023, unless the directions are revised earlier. The restriction affects the bank's operations and oversight, while depositors and other stakeholders remain subject to the existing limits and conditions under the directive.

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

RBI extended the existing Section 35A directions on Nagar Urban Co-operative Bank Ltd., Ahmednagar. The restrictions remain in force until June 06, 2023, subject to review.

The bank remains under RBI operating directions, so its activities continue to be constrained under the unchanged terms of the earlier order until June 06, 2023, unless reviewed earlier. Depositors and other stakeholders remain subject to the operational restrictions already in place.

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

RBI extended the existing Section 35A directions on Nagar Urban Co-operative Bank Ltd., Ahmednagar until March 06, 2023. The original operating restrictions, first imposed in December 2021, continue unchanged.

The bank remains subject to the same operating restrictions through March 06, 2023, subject to review. Depositors, counterparties, and other stakeholders continue to face the consequences of the bank operating under RBI-imposed directions rather than normal unrestricted conditions.

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

RBI extended the Section 35A directions on Nagar Urban Co-operative Bank Ltd., Ahmednagar until December 06, 2022. The earlier restrictions continue unchanged, subject to review.

The bank remains subject to the same RBI operational restrictions for the extended period through December 06, 2022. Depositors, customers, and counterparties remain affected by the continuing directions, and the bank must operate within the unchanged constraints unless and until RBI modifies or withdraws them.

• Section 35A
• 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 Directions on Nagar Urban Co-operative Bank Ltd., Ahmednagar until September 06, 2022. The original terms remain unchanged.

The bank must continue to operate under the existing RBI restrictions until September 06, 2022, unless further modified or withdrawn. Customers and counterparties remain subject to whatever operational limits the original directions imposed, while the bank itself remains under regulatory review.

• 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 placed Nagar Urban Co-operative Bank Ltd., Ahmednagar under Section 35A restrictions. The bank’s lending, investment, liability-raising, fresh deposit acceptance, and payment activities were curtailed, and withdrawals were capped at ₹10,000.

The bank must operate under RBI-imposed restrictions and cannot expand lending, raise fresh liabilities, accept fresh deposits, or freely make payments or dispose of assets without approval. Depositors face a withdrawal cap of ₹10,000 across accounts subject to conditions, and the restrictions remain in force for six months unless modified or reviewed by RBI.

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

RBI imposed a ₹40 lakh penalty on Nagar Urban Co-operative Bank Ltd., Ahmednagar for non-compliance with IRAC, exposure-norm and related RBI directions. The bank was also found to have not followed its bye-laws on admitting a co-operative society as a member.

The bank must absorb the penalty and address the compliance gaps identified by RBI. Although the release does not impose an operational restriction, it signals regulatory censure and may require stronger adherence to IRAC, exposure, and membership-related governance requirements going forward.

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

RBI imposed a Rs 5 lakh penalty on Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra. The action was for violating directives on loans and advances to directors.

The bank must absorb the monetary penalty; no additional business restriction is described in the release. The finding may also weigh on the bank’s governance and compliance oversight expectations going forward.

• Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)