People’s Co-operative Bank Ltd., Kanpur

RBI cancelled the licence of People’s Co-operative Bank Limited, Kanpur, Uttar Pradesh. The bank must cease banking business, and winding-up/liquidation steps were also initiated.

The bank can no longer conduct banking business or accept/repay deposits. Depositors are pushed into the liquidation/DICGC framework, with eligible claims payable up to ₹5 lakh subject to law; more than 99% of depositors were stated to be entitled to full recovery from DICGC based on the bank’s data.

• Section 11(1) of the Banking Regulation Act, 1949
• 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

+5 more in the case brief

RBI extended the existing directions on People’s Co-operative Bank Ltd., Kanpur for another six months. The bank remains under Section 35A restrictions subject to review.

The bank continues to operate under RBI-imposed Section 35A restrictions through June 10, 2021 unless modified earlier. Customers and counterparties remain subject to the operational constraints already in force at the bank’s premises, with any further changes dependent on RBI review and future modifications.

• Section 35A of the Banking Regulation Act, 1949

RBI placed People’s Co-operative Bank Ltd., Kanpur, under Section 35A restrictions. The bank cannot make fresh loans, accept fresh deposits, or allow withdrawals without RBI approval.

The bank must operate under tight RBI-imposed restrictions and cannot expand lending, raise fresh funds, or permit withdrawals except as allowed in the directions. Depositors and counterparties are directly affected by the freeze on account withdrawals and the limits on ordinary banking transactions. The restrictions took effect from the close of business on June 10, 2020 and were stated to remain in force for six months, subject to review.

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