Purvanchal Co-operative Bank Limited, Ghazipur

RBI cancelled the licence of Purvanchal Co-operative Bank Ltd., Ghazipur, Uttar Pradesh. The bank must cease banking business from the close of business on June 15, 2024.

The bank must stop all banking operations immediately after the close of business on June 15, 2024. Depositors can no longer use the bank for acceptance or repayment of deposits, and the winding-up process and liquidation will determine deposit insurance payouts up to the statutory limit.

• 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 placed Purvanchal Co-operative Bank Limited, Ghazipur under Section 35A directions restricting core banking operations. The bank faces caps on lending, deposits, liabilities, payments, asset transfers, and depositor withdrawals.

The bank remains operational but under strict constraints, which limits lending, funding, payments, and asset movements. Depositors face withdrawal restrictions, with possible insurance claims up to ₹5 lakh for eligible deposits; the bank may continue business only within the RBI-imposed conditions until the directions are modified or expire.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949
• Section 18A of the DICGC Act (amendment) 2021