The Laxmi Cooperative Bank Limited, Solapur

RBI cancelled the licence of The Laxmi Co-operative Bank Limited, Solapur, Maharashtra. The bank must stop banking business with effect from the close of business on September 22, 2022.

With the licence cancelled, the bank is prohibited from conducting banking business, including accepting and repaying deposits, with immediate effect. The winding-up process is expected to follow, and depositors may claim insurance up to the statutory ceiling of ₹5 lakh through DICGC, subject to applicable provisions. The action directly affects the bank, its depositors, and the liquidation process.

• 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 Section 35A directions on The Laxmi Co-operative Bank Limited, Solapur, for another three months. The bank will keep operating under the same restrictions.

The bank remains subject to the same operational restrictions for the extension period, and must comply with all unchanged terms and conditions of the existing directions through November 11, 2022 unless reviewed earlier. Depositors and other stakeholders continue to face a restricted operating environment, though the bank is not being shut down or having its licence cancelled.

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

RBI has extended its Section 35A directions for The Laxmi Co-operative Bank Ltd., Solapur for three more months. The bank remains subject to restrictions on withdrawal and acceptance of deposits.

The bank must continue operating under RBI-imposed limits on withdrawals and deposit acceptance through August 11, 2022, unless modified earlier. Depositors are directly affected by the caps, and the bank’s ability to conduct normal business remains constrained.

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

RBI placed The Laxmi Cooperative Bank Limited, Solapur under Section 35A directions with major operating restrictions. The bank's withdrawals were capped at ₹1,000 and it could not undertake several core activities without RBI approval.

The bank must operate under tight RBI-imposed restrictions, with no unrestricted lending, investment, deposit-taking, or payment outflows, and depositor withdrawals are capped at ₹1,000 subject to conditions. Customers, depositors, and counterparties are directly affected, and the restrictions remain in force for six months from November 12, 2021 unless modified or reviewed by RBI.

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