The Karwar Urban Co-operative Bank Ltd., Karwar

RBI cancelled the licence of The Karwar Urban Co-operative Bank Ltd., Karwar. The bank must stop banking business immediately, and the registrar has been asked to initiate winding up and appoint a liquidator.

The bank can no longer accept or repay deposits or otherwise conduct banking business. Depositors’ claims move into the liquidation/DICGC framework, with insured deposits covered up to ₹5 lakh per depositor subject to law; the release says 92.90% of depositors are entitled to receive their full deposit amount from DICGC. The Registrar of Cooperative Societies, Karnataka has been asked to initiate winding up and appoint a liquidator. The effective cessation of banking business is July 23, 2025.

• 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 has extended its existing directions against The Karwar Urban Co-operative Bank Ltd., Karwar for another three months, up to close of business on September 12, 2025. The earlier terms remain unchanged.

The bank remains under RBI-imposed operating directions through September 12, 2025, subject to review. Its business will continue to operate within the constraints of the existing directive, and the regulator has signaled no change in its view of the bank's financial position.

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

RBI has extended its existing directions on The Karwar Urban Co-operative Bank Ltd., Karwar for another three months. The terms of the directive remain unchanged.

The bank remains subject to the same RBI directions through June 12, 2025, with no change to the existing conditions. Any operational constraints imposed by the original directive continue to apply during the extended period, affecting the bank and its customers accordingly.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended the existing Directions on The Karwar Urban Co-operative Bank Ltd., Karwar for another three months. The earlier terms continue unchanged.

The bank remains under the RBI’s operative directions for an additional three months and must continue complying with the unchanged restrictions and conditions until close of business on March 12, 2025, unless further reviewed or modified by RBI.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed The Karwar Urban Co-operative Bank Ltd., Karwar under restrictive directions under Section 35A of the Banking Regulation Act. The bank cannot carry out several normal banking activities or allow depositor withdrawals except as specifically permitted.

The bank’s operations are tightly constrained for six months unless RBI modifies the directions. Depositors cannot freely withdraw funds, except where permitted under the order and through DICGC insurance claims up to the applicable ceiling; lending, investing, fundraising, and asset disposal are also restricted without RBI approval.

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

+1 more in the case brief