Case Brief
RBI issued directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to Innovative Co-operative Urban Bank Ltd., Delhi. The order follows RBI's engagement with the bank's Board and senior management, which did not result in concrete efforts to address supervisory concerns or protect depositors. The directions, effective from the close of business on July 04, 2025, restrict lending, renewals, investments, borrowing, fresh deposit acceptance, payments, compromises/arrangements, and disposal of assets without prior RBI approval. Withdrawals are limited to ₹35,000 per depositor account, subject to conditions, though essential expenses such as salaries, rent, and electricity may still be incurred. RBI also noted that the order is not a cancellation of the banking licence and will remain in force for six months, subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location