United India Co-operative Bank Limited

RBI cancelled the licence of United India Co-operative Bank Limited, Nagina, Uttar Pradesh. The bank must cease banking business and liquidation has been sought.

The bank must stop all banking operations, including accepting and repaying deposits, from the specified effective date. Depositors become reliant on liquidation and DICGC insurance coverage, with claims up to ₹5 lakh subject to the DICGC Act; RBI noted that 99.98% of depositors would receive the full amount of their deposits from DICGC based on bank-submitted data.

• Section 11(1)
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949
• Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949

+1 more in the case brief

RBI extended the existing Section 35A directions on United India Co-operative Bank Limited, Nagina, Bijnor for three more months. The order continues the bank's operating restrictions subject to review.

The bank remains subject to the same RBI-imposed operating restrictions during the extension period. Depositors and other stakeholders continue to face the consequences of the existing directions until July 22, 2023 or until RBI reviews and modifies them.

• Section 35 A read with section 56 of the Banking Regulation Act, 1949 (AACS)

RBI placed United India Co-operative Bank Limited, Nagina, Bijnor under Section 35A directions with major operating restrictions. The bank cannot expand lending, accept fresh deposits, or allow withdrawals beyond the stated set-off conditions.

The bank must operate under RBI-imposed constraints until the directions expire, are modified, or reviewed. Depositors cannot freely withdraw balances, and the bank cannot undertake normal lending, investment, funding, or asset-disposal activities without RBI approval. The restrictions take effect from the close of business on July 22, 2022.

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

RBI imposed a monetary penalty of ₹1 lakh on United India Co-operative Bank Limited, Nagina, UP. The penalty was for violations involving an unsecured housing loan to a director and failure to submit a connected-lending return.

The bank must absorb the ₹1 lakh penalty; the release does not state any additional operating restriction. The action is retrospective enforcement for past compliance lapses and does not itself impose new caps or bans on customers or counterparties.

• section 20
• section 35A read with section 56
• Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949

RBI imposed a ₹1 lakh penalty on United India Co-operative Bank Limited, Nagina. The action was for failing to submit required returns to RBI on time.

The bank must absorb the monetary penalty and ensure timely submission of all required regulatory returns going forward. The action does not impose a business restriction, but it signals continued RBI scrutiny over compliance and reporting obligations.

• section 27 read with section 56 of the Banking Regulation Act, 1949
• Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949

RBI withdrew the earlier Section 35A/56 directions against United India Co-operative Bank Ltd., Nagina, with effect from October 15, 2016. The bank can continue regular banking business.

The earlier operating restrictions no longer apply from October 15, 2016. United India Co-operative Bank Ltd. can resume normal banking operations, and depositors/customers are no longer subject to the withdrawn direction-based constraints.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS)
• sub section (2) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS)