Uravakonda Co-operative Town Bank Ltd

RBI cancelled the licence of Uravakonda Co-operative Town Bank Ltd. and directed that it cease banking business from the close of business on July 20, 2024. The bank is also to be wound up and liquidated.

The bank can no longer accept deposits, repay deposits, or otherwise conduct banking business. Deposit insurance claims up to ₹5,00,000 per depositor may be payable through DICGC on liquidation, subject to the law, and the liquidation process is to be initiated by the state authorities.

• Section 11(1) of the Banking Regulation Act, 1949
• 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 its existing directions on Uravakonda Co-operative Town Bank Ltd. for three more months. The directive continues unchanged through August 24, 2024.

The bank remains subject to the RBI directive for an additional three months, so any operational constraints in the existing order continue to apply. Customers and counterparties are affected only to the extent already covered by the underlying directions; no new terms were introduced, only the duration was extended.

• 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 for Uravakonda Co-operative Town Bank Ltd., Uravakonda for another three months. The bank remains subject to the same restrictions until May 24, 2024, unless reviewed earlier.

The bank continues to operate under the same RBI-imposed directions through May 24, 2024, unless the directive is reviewed or changed earlier. Any operational limits contained in the underlying directive continue to apply to the bank and, indirectly, to its customers and counterparties.

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

RBI extended its existing directions against Uravakonda Co-operative Town Bank Ltd. for three more months. The terms remain unchanged.

The bank continues to operate under the existing RBI directions until close of business on February 24, 2024, unless further extended or revised. Customers and counterparties remain subject to whatever operational limits or conditions were already in force under the directive, which has not otherwise been modified.

• Section 35A of the Banking Regulation Act, 1949
• 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 extended the existing Section 35A/Section 56 directions against Uravakonda Co-operative Town Bank Ltd. for three more months. The earlier restrictions remain unchanged.

The bank remains subject to the RBI’s existing operating restrictions until November 24, 2023, unless further extended or modified. Depositors and other stakeholders continue to face the consequences of the directive while the bank operates under the unchanged terms.

• 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 Uravakonda Co-operative Town Bank Ltd. under Section 35A restrictions. The bank faces limits on lending, investments, liabilities, fresh deposits, payments, and withdrawals.

The bank must operate under RBI-imposed constraints for six months from February 24, 2023 unless modified earlier. Borrowing, lending, new deposits, payments, and asset disposals are constrained, and depositors face a withdrawal cap of ₹5,000 subject to conditions; eligible depositors may also seek DICGC insurance up to ₹5 lakh subject to the stated process.

• 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 ₹2 lakh penalty on The Uravakonda Co-operative Town Bank Ltd., Uravakonda, Andhra Pradesh. The penalty was for KYC direction violations and reporting/compliance submission lapses.

The bank must absorb the monetary penalty; the release does not describe any additional operating restriction. The action may also signal heightened compliance scrutiny around KYC and statutory/regulatory reporting obligations.

• Section 47A (1) (c) read with Section 46 (4) of The Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)