Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj
It is hereby notified for information of the public that in exercise of powers vested in it under sub section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) vide Directive Ref. No. NGP.DOS.SSM 3.No.S276/15-02-156/2026-2027 dated August 25, 2026, has issued certain Directions to Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj ,…
The Reserve Bank of India (RBI) has recently issued Directions to Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj, as per Section 35A read with Section 56 of the Banking Regulation Act, 1949. Effective from August 27, 2026, the bank is prohibited from granting or renewing loans and advances, making investments, incurring liabilities, or selling or transferring its assets, unless specified in the RBI Direction.
The bank is also barred from allowing withdrawals from depositor accounts, except for setting off loans against deposits as per the RBI Direction. The bank can incur expenses for essential items like employee salaries, rent, and utility bills, as per the Directions. The RBI has engaged with the bank's Board and Management for improvement, but the lack of action has led to these Measures.
Eligible depositors will receive deposit insurance claims up to ₹5,00,000 from the DICGC, and can seek further information from bank officials or the DICGC website. The RBI's Directions do not cancel the bank's license, but the bank will continue operations subject to the Restrictions. The Directions remain in force for six months, with the RBI reviewing the situation and modifying as necessary.
Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
