The Vaishali Shahari Vikas Co-operative Bank Ltd

RBI has further extended its existing Section 35A directions against The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur. The directions now run until close of business on December 14, 2024.

The bank continues to operate under the existing RBI-imposed conditions until close of business on December 14, 2024, unless further modified or withdrawn. Customers and counterparties remain subject to the same operational restrictions already in place under the directive.

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

RBI has extended its existing Section 35A directions on The Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Bihar. The directive now remains in force until close of business on March 14, 2024.

The bank must continue to comply with the existing RBI directions through March 14, 2024, subject to review. The restriction remains in place on the bank’s operations as specified in the underlying directive, affecting the bank and its customers until the extended expiry date.

• 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 Vaishali Shahari Vikas Co-operative Bank Ltd., Hajipur, Bihar under Section 35A directions. The bank faces restrictions on lending, deposits, liabilities, payments, asset disposal, and depositor withdrawals for six months.

The bank must operate under strict RBI controls and cannot expand lending, raise fresh deposits, or make unrestricted payments without approval. Depositors face withdrawal restrictions, though eligible depositors may claim deposit insurance up to ₹5 lakh under the DICGC framework, and the directions remain in force for six months from June 14, 2023 unless modified earlier.

• 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