The Botad People's Co-operative Bank Limited

RBI cancelled the licence of The Botad Peoples Co-operative Bank Ltd., Botad, and notified it as a non-banking institution. The bank must cease banking business immediately and repay unpaid or unclaimed non-member deposits on demand.

The bank can no longer operate as a banking institution and must immediately cease accepting deposits from non-members. Depositors with unpaid or unclaimed non-member deposits retain a claim and the bank must repay those amounts whenever demanded. The effective date for the licence cancellation is the close of business on December 29, 2023, with immediate operational consequences thereafter.

• Section 36A (2) read with Section 56 of the Banking Regulation Act, 1949
• Section 22 read with Section 56 of the Banking Regulation Act, 1949
• section 5(b) of the Act

RBI has imposed a monetary penalty of Rs 1 lakh on The Botad People's Co-operative Bank Limited, Botad, Gujarat.

The bank must absorb the penalty and ensure stronger compliance with cash transaction reporting and KYC requirements going forward. The action signals heightened regulatory scrutiny, but no additional operational restriction is described in the release.

• Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)