Navodaya Urban Co-operative Bank Ltd

RBI cancelled the licence of Navodaya Urban Co-operative Bank Ltd., Nagpur, Maharashtra, ending its authority to carry on banking business. The order was effective from the close of business on October 8, 2018.

With immediate effect from the stated close-of-business date, the bank is prohibited from conducting banking business, including accepting and repaying deposits. Liquidation proceedings are to commence, and depositor repayment will be processed under the DICGC Act, 1961, subject to the usual terms and the ₹1,00,000 insurance ceiling per depositor.

• section 11(1)
• section 22(3)(d) read with section 56 of the Banking Regulation Act, 1949
• section 22(3)(a) read with section 56 of the Banking Regulation Act, 1949

+4 more in the case brief

RBI extended its existing directions on Navodaya Urban Co-operative Bank Ltd., Nagpur until 15 October 2018. The bank will continue operating with restrictions.

Navodaya Urban Co-operative Bank Ltd. must continue to operate under RBI-imposed restrictions through 15 October 2018, subject to any later modification or review by RBI. Customers and counterparties remain affected by the bank’s constrained operations, but the bank is not being shut down or de-licensed by this release.

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

RBI has extended its existing directions against Navodaya Urban Co-operative Bank Ltd., Nagpur, for another six months until July 15, 2018. The bank will keep operating under restrictions.

Navodaya Urban Co-operative Bank Ltd. must continue operating under the RBI-imposed restrictions until July 15, 2018, unless modified earlier. The restrictions affect the bank’s business conduct and may indirectly constrain services available to customers and counterparties, while the bank’s licence remains in force.

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

RBI extended the existing restrictions on Navodaya Urban Co-operative Bank Ltd, Nagpur, for another three months until January 15, 2018. The bank may continue operating, but only subject to those restrictions.

Navodaya Urban Co-operative Bank Ltd must continue operating under RBI-imposed restrictions through January 15, 2018 unless the directions are modified earlier. Depositors and customers remain affected by the restrictions on banking operations, but the bank is not being shut down or licensed cancelled by this release.

• Section 35A(1) of the Banking Regulation Act, 1949 (AACS)

RBI extended the existing directions on Navodaya Urban Co-operative Bank Ltd., Nagpur, for another four months. The bank remains allowed to operate only with restrictions.

Navodaya Urban Co-operative Bank Ltd. continues operating under RBI-imposed restrictions through October 15, 2017, unless modified earlier. Customers and counterparties remain subject to the bank’s constrained operating status, and the restrictions will persist until the bank’s financial position improves or RBI revises the directions.

• Section 35A(1) of the Banking Regulation Act, 1949 (AACS)

RBI modified and continued its restrictions on Navodaya Urban Co-operative Bank Ltd., Nagpur. The bank may keep operating, but only subject to restrictions until further review.

Navodaya Urban Co-operative Bank must continue operating under RBI-imposed restrictions through the stated validity period, subject to further review or modification by the regulator. Customers and counterparties remain affected by the bank’s constrained operations, even though banking business is not fully stopped and the licence is not cancelled.

• Section 35A(1) of the Banking Regulation Act, 1949 (AACS)

RBI imposed six-month Directions on Navodaya Urban Cooperative Bank, Nagpur, restricting core banking activities and capping withdrawals. The bank may continue operating only subject to these restrictions.

The bank must operate under RBI-imposed constraints for six months from December 15, 2016, with no fresh lending, investment, new liabilities, fresh deposits, or unrestricted asset disposal unless RBI approves. Depositors are affected by a withdrawal cap of ₹1,000 per account on one occasion during the restriction period. The bank’s normal business expansion and liquidity actions are constrained until RBI modifies or lifts the Directions.

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