Thodupuzha Urban Co-operative Bank Ltd, No.394, Kerala

RBI extended its existing Section 35A directions on Thodupuzha Urban Co-operative Bank Ltd., Kerala, for another three months. The underlying terms remain unchanged.

The bank remains subject to the same RBI operating conditions for the extended period, from February 24, 2023 through May 23, 2023. Any restrictions already imposed by the original directions continue to bind the bank until further review or modification 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 placed Thodupuzha Urban Co-operative Bank Ltd. under Section 35A directions with broad operating restrictions. The bank cannot undertake several core activities, and depositor withdrawals are blocked subject to limited set-off conditions.

The bank must operate under RBI-imposed restrictions until the directions expire or are modified. Customers cannot freely withdraw deposits, and the bank cannot expand lending, take fresh deposits, or undertake specified liability-creating transactions without RBI approval; this affects depositors, borrowers, and counterparties. The order is subject to review after six months from close of business on August 23, 2022.

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