Case Brief
RBI issued fresh Directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) against The Gujarat Rajya Karmachari Co-op. Bank Ltd., Ahmedabad, Gujarat. The bank was restricted from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, and dealing with assets except as permitted; it was also directed not to allow withdrawal from depositor accounts, subject to limited set-off and essential operating expenses. RBI stated that it had engaged with the bank's Board and Senior Management earlier, but the bank had not taken concrete efforts to address supervisory concerns and protect depositor interests. The Directions are in force for six months from the close of business on March 11, 2026, and are subject to review. RBI clarified that this is not a cancellation of the banking licence and that the bank may continue banking business only within the specified restrictions.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location