The Bhopal Nagrik Sahakari Bank Ltd., Bhopal

RBI cancelled the banking licence of The Bhopal Nagrik Sahakari Bank Ltd., Bhopal, effective January 22, 2018. The bank was found non-compliant with capital, solvency, and depositor-protection requirements.

With immediate effect, 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 framework, subject to the statutory ceiling of ₹1,00,000 per depositor and other applicable conditions. Depositors are the primary affected group, and the bank’s operations effectively cease pending liquidation.

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

+2 more in the case brief

RBI extended the existing Section 35A directions on Bhopal Nagrik Sahakari Bank Limited, Bhopal. The bank will continue to operate with restrictions for another six months.

The bank remains operational, but its business continues to be constrained by the RBI's directions until January 31, 2018, unless modified earlier. Customers and other stakeholders must continue to deal with the bank under the existing restrictions.

• sub-section (1) of section 35 A read with section 56 of the Banking Regulation Act,1949 (As Applicable to Cooperative Societies)

RBI extended its existing directions against The Bhopal Nagrik Sahakari Bank Ltd., Bhopal for six more months. The bank remains under broad operational restrictions, including a cap on depositor withdrawals.

The bank must continue operating under RBI-imposed restrictions through April 30, 2015 unless modified earlier. Its lending, investment, funding, payment, and asset-disposal activities remain constrained, and depositors face a withdrawal cap of Rs 1,000 per account subject to conditions.

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