The National Co-operative Bank Ltd., Bangalore

RBI has extended the Section 35A directions in force against The National Co-operative Bank Ltd., Bangalore. The existing restrictions continue unchanged until close of business on January 24, 2025.

The bank remains subject to the same RBI-imposed operating restrictions for the extension period. Its operations continue under the existing directive until close of business on January 24, 2025, unless further modified or lifted 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 has extended its existing Directions on The National Co-operative Bank Ltd., Bangalore by three months. The earlier restrictions remain unchanged and now run until close of business on October 24, 2024.

The bank remains under the same RBI operational restrictions until close of business on October 24, 2024, unless altered earlier on review. The extension continues to constrain the bank’s activities and affects its customers and counterparties to the extent covered by the underlying directive.

• 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 National Co-operative Bank Ltd., Bangalore for another three months. The terms of the earlier order remain unchanged.

The bank remains subject to the same RBI operating restrictions until close of business on July 24, 2024, unless reviewed or modified earlier. Customers and counterparties continue to be affected by the existing conditions imposed under the directive.

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

RBI has extended its existing Section 35A directions on The National Co-operative Bank Ltd., Bangalore by three months. The directive now remains in force until close of business on April 24, 2024, subject to review.

The bank must continue operating under the same RBI-imposed restrictions until close of business on April 24, 2024, subject to further review. Any operational limits contained in the underlying directive remain in effect for the bank and its customers during this period.

• Section 35A 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 imposed fresh Section 35A restrictions on The National Co-operative Bank Ltd., Bangalore. The bank faces caps on withdrawals and cannot undertake several core banking activities without prior RBI approval.

The bank must operate under RBI-imposed restrictions for the specified six-month period, with core lending, investment, liability, deposit-taking, payment, and asset-disposal activities curtailed unless RBI approves otherwise. Depositors are affected by the withdrawal cap, although eligible depositors may access deposit insurance claims up to ₹5 lakh subject to DICGC procedures and willingness submission. The bank’s normal business operations continue only within the confines of the directions until modified or reviewed by RBI.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949
• Section 18A of the DICGC Act (amendment) 2021

RBI imposed a Rs 2 lakh monetary penalty on The National Co-operative Bank Limited, Bengaluru, for violating supervisory directions. The bank had sanctioned loans in breach of exposure restrictions under the Supervisory Action Framework for Urban Co-operative Banks.

The bank must bear the monetary penalty and continue operating, but the release does not impose any new operational ban or withdrawal of business. The action signals RBI’s view that the bank’s lending practices breached supervisory exposure limits, with compliance expectations remaining in force.

• Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949 (AACS)