Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – The Citizens Co-operative Bank Ltd., Jammu
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. पर्य.वि.जम्मू. सं.S132/12-01-040/2026-27 dated August 25, 2026 has issued certain Directions to The Citizens Co-operative Bank Ltd., Jammu , (“the bank”),…
The Reserve Bank of India (RBI) has issued new directives for The Citizens Co-operative Bank Ltd., Jammu, effective from August 27, 2026. These directions, under Section 35 A read with Section 56 of the Banking Regulation Act, 1949, prohibit the bank from granting or renewing loans, making investments, incurring liabilities, and accepting new deposits without prior RBI approval.
The bank is also barred from entering into compromises, arrangements, or disposing of its properties except as stated in the RBI direction. The RBI has directed the bank to allow withdrawal of ₹1,25,000/- from depositors' accounts, but loans can be set off against deposits under certain conditions. The bank may incur expenses for essential items like salaries, rent, and electricity bills.
The depositors will be eligible for a claim of up to ₹5,00,000/- from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as per DICGC Act, 1961. The bank's license remains unaffected by these directions. The RBI will continue to monitor the bank's financial position and may modify these directions as warranted.
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.
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