National Urban Co-operative Bank Ltd., Bahraich (U.P.)

RBI cancelled the licence of National Urban Co-operative Bank Limited, Bahraich (U.P). The bank must cease banking business immediately and liquidation/winding-up steps are to follow.

The bank must stop all banking operations immediately, including accepting and repaying deposits. The Commissioner and Registrar of Cooperative, Uttar Pradesh has been requested to initiate winding-up and appoint a liquidator. Depositors may claim insurance cover up to ₹5,00,000 through DICGC subject to the applicable law; RBI noted that 99.87% of depositors are entitled to receive their full deposit amount from DICGC.

• 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

+1 more in the case brief

RBI extended the existing Section 35A directions on National Urban Co-operative Bank Ltd., Bahraich (U.P.) for another three months. The bank remains under the same operating restrictions, subject to review.

The bank continues to operate under RBI-imposed directions until October 22, 2023 unless modified earlier on review. The restrictions remain in force for the bank and indirectly affect its customers and counterparties to the extent the directions constrain normal operations.

• section 35A read with section 56 of the Banking Regulation Act, 1949 (AACS)

RBI extended the Section 35A directions on National Urban Co-operative Bank Ltd., Bahraich (U.P.) for three more months. The bank remains under the same operational restriction, subject to review.

The bank continues to operate under the RBI-imposed Section 35A restrictions during the extended period, and any further modification will depend on RBI review. Depositors, customers, and counterparties remain subject to the operational limits implied by the directions until July 22, 2023 or until the RBI modifies them.

• section 35 A read with section 56 of the Banking Regulation Act, 1949 (AACS)

RBI extended the Section 35A directions on National Urban Co-operative Bank Ltd., Bahraich (U.P.) for another three months. The order remains subject to review.

The bank continues to operate under RBI-imposed restrictions through April 22, 2023, unless modified earlier by the RBI. This affects the bank's operational flexibility and any stakeholders impacted by the directions, while the bank's licence remains intact.

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

RBI placed National Urban Co-operative Bank Ltd., Bahraich under Section 35A directions. The bank’s lending, deposit-taking, payments, and asset-liability activities were restricted, with withdrawal limits imposed.

The bank must operate under RBI-imposed restrictions and cannot expand lending, take fresh deposits, or freely meet liabilities without approval. Depositors face withdrawal caps, while the bank’s counterparties and customers are affected by limited payments and constrained use of assets until the directions are modified or withdrawn.

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

RBI imposed a ₹1 lakh penalty on National Urban Co-operative Bank Ltd., Bahraich. The penalty was for multiple compliance and prudential norm violations.

The bank must absorb the monetary penalty and continue complying with RBI instructions and prudential requirements. There is no stated restriction on operations, but the action signals supervisory non-compliance in areas affecting reporting, customer due diligence, and exposure management.

• Section 47A(1)(c)
• Section 46(4)
• Section 36(1)