The Madgaum Urban Co-operative Bank Ltd

RBI cancelled the licence of The Madgaum Urban Co-operative Bank Ltd., Margao, Goa. The bank was found short of adequate capital/earning prospects and non-compliant with statutory licensing requirements.

The bank is prohibited from conducting banking business, including accepting and repaying deposits, with immediate effect. Liquidation proceedings are to begin, and depositor claims will be processed under the DICGC Act, with eligible depositors expected to receive insurance cover up to the statutory ceiling of ₹5,00,000.

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

+4 more in the case brief

RBI extended the existing directions on The Madgaum Urban Co-operative Bank Ltd., Margao, Goa for two more months. The order continues unchanged from June 03, 2021 to August 02, 2021, subject to review.

The bank must continue operating under the existing RBI restrictions for the extension period. Any limits or operational conditions already imposed by the prior directions remain in force, affecting the bank and its customers until August 02, 2021, unless modified further by RBI.

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

RBI extended the Section 35A directions on The Madgaum Urban Co-operative Bank Ltd., Margao, Goa for three more months. The existing terms and restrictions continue unchanged.

The bank remains under the same RBI operating conditions for the extension period, with the existing restrictions continuing through June 02, 2021 unless further modified or withdrawn. Depositors and other stakeholders remain subject to the bank's constrained operations during this period.

• 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

RBI extended the existing Section 35A directions on The Madgaum Urban Co-operative Bank Ltd., Margao, Goa for another three months. The restrictions continue unchanged from December 3, 2020 to March 2, 2021.

The bank remains under the same RBI operating restrictions during the extended period. Customers, depositors, and the bank itself remain subject to the unchanged conditions until March 02, 2021 or until RBI reviews/changes the directive.

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

RBI extended the existing directions on The Madgaum Urban Co-operative Bank Ltd., Margao, Goa for another four months. The earlier terms continue unchanged.

The bank continues to operate under the same RBI restrictions until December 02, 2020 unless reviewed/modified earlier. The extension maintains the existing constraints on the bank and affects its operations and customers accordingly.

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

RBI extended the existing Section 35A directions on The Madgaum Urban Co-operative Bank Ltd., Margao, Goa. The directions will continue from May 03, 2020 to August 02, 2020, subject to review.

The bank remains under RBI-imposed operational restrictions for the extension period, and the existing terms continue unchanged. Customers and counterparties must continue to operate within those constraints until the directions are reviewed or further modified.

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

RBI extended its existing directions on Madgaum Urban Cooperative Bank and raised the withdrawal cap to ₹30,000 per depositor account from ₹5,000. The order continues to restrict normal operations under Section 35A/Section 56.

Madgaum Urban Cooperative Bank remains under RBI directions and cannot operate without the stated withdrawal controls. Depositors may withdraw only up to the revised cap of ₹30,000 per account, subject to set-off for any borrowal exposure, and the bank must ring-fence funds for depositor payments during the extended period through May 02, 2020.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-sections (1) and (2) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed The Madgaum Urban Co-operative Bank Ltd., Margao, Goa under Section 35A directions. The bank faces broad operating restrictions, including a cap on withdrawals and bans on fresh lending/deposits without approval.

The bank must operate under RBI-imposed constraints for six months, with core activities such as lending, deposit-taking, and liability creation restricted unless specifically approved. Depositors are affected by the withdrawal cap, while borrowers and counterparties face limits on new or renewed credit and related transactions. The bank must comply with reporting, disclosure, and other procedural obligations to RBI during the direction period.

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