{
  "id": 12859585,
  "title": "Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – Sri Mahatma Basaveshwar Co-operative Bank Ltd., Afzalpur",
  "url": "https://urgent.news/2026/10/08/directions-under-section-35-a-read-with-section-56-of-the-banking",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T11:58:18.000Z",
  "source": {
    "name": "Reserve Bank of India",
    "slug": "reserve-bank-of-india",
    "url": "https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63764"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) has issued Directions to Sri Mahatma Basaveshwar Co-operative Bank Ltd. located in Afzalpur, under Section 35 A in conjunction with Section 56 of the Banking Regulation Act, 1949. Effective from October 8, 2026, the bank is prohibited from granting or renewing loans and advances, making investments, incurring liabilities, accepting fresh deposits, disbursing payments, entering into compromises or arrangements, or selling and transferring its properties and assets, unless specified in the RBI Direction. This comes after the RBI's engagement with the bank's board and senior management for improving its functioning was hindered by the bank's lack of efforts to address supervisory concerns and protect depositors' interests. Eligible depositors are entitled to claim deposit insurance up to ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) if they submit a willingness to claim and after verification. The bank may continue to incur expenses for essential items like salaries, rent, and electricity bills as specified in the RBI Directions. The issue of these Directions does not cancel the bank's license, but the bank must operate under these restrictions until its financial position improves. The RBI will monitor the bank's situation and may modify these Directions as needed, depending on the circumstances and in the best interests of the depositors. These Directions will remain in force for six months from October 8, 2026, and are subject to review.",
  "summary": "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. BLR.DOS.SSMS.No.S1220/09-01-243/2026-2027 dated October 07, 2026, has issued certain Directions to Sri Mahatma Basaveshwar Co-operative Bank Ltd.,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Reserve Bank of India",
        "title": "Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – The Tiruvalla Urban Co-operative Bank Ltd., Tiruvalla, Pathanamthitta",
        "url": "https://urgent.news/2026/10/08/directions-under-section-35-a-read-with-section-56-of-the-banking-12859586",
        "published": "2026-10-08T11:58:18.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}