The Merchant’s Co-operative Bank Ltd., Dist. Dhule, Maharashtra

RBI cancelled the licence of The Merchant’s Co-operative Bank Ltd., Dist. Dhule, Maharashtra. The bank can no longer conduct banking business, including accepting or repaying deposits.

The bank is immediately barred from conducting banking operations. Customers and depositors are affected because the bank can no longer accept deposits or repay them through normal banking business channels.

• Section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949
• Section 5(b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)

RBI placed The Merchants Co-operative Bank Ltd., Dist. Dhule under Section 35A directions from December 13, 2012. The bank faced major restrictions on lending, deposits, liabilities, payments, and asset disposal, with customer withdrawals capped at Rs. 1,000.

The bank must operate under RBI-imposed restrictions and cannot expand lending, take fresh deposits, incur new liabilities, or freely dispose of assets without prior written approval. Depositors are affected by the withdrawal cap of Rs. 1,000 subject to conditions, and the restrictions remain in force until RBI modifies them.

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