United India Co-operative Bank Ltd., Nagina, Bijnor (Uttar Pradesh)

RBI extended the Section 35A directions on United India Co-operative Bank Ltd., Nagina, Bijnor, for six more months. It also allowed depositors to withdraw up to ₹20,000 per depositor under the modified conditions.

The bank continues to operate under RBI-imposed restrictions through October 14, 2016, subject to further review. Depositors may withdraw up to ₹20,000 per depositor under the specified conditions, but all other restrictions from the earlier directive remain in force. The relaxation is explicitly stated not to indicate any improvement in the bank’s financial position.

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

RBI placed United India Co-operative Bank Ltd., Nagina, Bijnor under restrictive directions under Section 35A. The bank’s lending, investment, liability creation, fresh deposit-taking and most payments were curtailed, with depositor withdrawals capped at ₹1,000.

The bank must operate under strict RBI-imposed limits for six months from July 15, 2015 unless modified earlier. Customers face severe restrictions on withdrawals and the bank cannot expand lending, take fresh deposits, or undertake most new liabilities and asset disposals without RBI approval.

• Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949