{
  "id": 12859586,
  "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",
  "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=63763"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) has issued Directions to The Tiruvalla Urban Co-operative Bank Ltd. under Section 35A in conjunction with Section 56 of the Banking Regulation Act, 1949. Effective from October 08, 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, and selling or transferring assets, except as notified by the RBI.\n\nThe bank may not allow withdrawals from savings or current accounts, but is permitted to set off loans against deposits within the confines of the RBI's guidelines. The bank is allowed to spend on essential items such as employee salaries, rent, and utility bills as outlined in the Directions.\n\nThe RBI has been monitoring the bank's performance and has engaged with the bank's board and senior management to address supervisory concerns. However, the lack of substantial efforts to rectify issues has compelled the RBI to issue these Directions. Eligible depositors will receive a maximum insurance claim of ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) upon submitting their willingness and after verification.\n\nThese Directions do not terminate the bank's license but impose restrictions until the bank's financial position improves. The RBI will continue to assess the situation and may modify the Directions as deemed necessary for the benefit of depositors. The Directions remain in effect for six months, with the possibility of 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. TVM.DOS.SED.No.S485/12-04-221/2026-2027 dated October 07, 2026, has issued certain Directions to The Tiruvalla Urban Co-operative Bank Ltd., Tiruvalla,…",
  "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 – 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",
        "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."
}