**Executive Summary**
The Reserve Bank of India (RBI) has issued directions under Section 35 A of the Banking Regulation Act, 1949, read with Section 56, to Urban Co-operative Bank Ltd., Dehradun, effective February 10, 2026. These directions impose restrictions on the bank's operations due to supervisory concerns and aim to protect depositors' interests. The directions will remain in force for six months and are subject to review.
**Key Points / Main Content**
* **Restrictions on Bank Operations:**
* The bank cannot grant or renew loans and advances, make investments, incur liabilities including borrowing, accept fresh deposits, disburse payments, enter into compromises, or dispose of assets without prior RBI approval.
* **Withdrawal Restrictions:**
* The bank is directed not to allow withdrawals from savings, current, or any other depositor accounts.
* The bank is allowed to set off loans against deposits.
* **Permitted Expenditures:**
* The bank may incur expenditure on essential items like employee salaries, rent, and electricity bills, as specified by the RBI.
* **Deposit Insurance:**
* Eligible depositors can receive up to ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) based on willingness and verification.
* Depositors can contact the bank for more information or visit the DICGC website.
* **License Status:**
* The directions should not be construed as a cancellation of the bank's license.
* **Review and Monitoring:**
* The RBI will monitor the bank's position and may modify the directions as needed.
* **Duration:**
* The directions are effective for six months from the close of business on February 10, 2026.
**Impact Analysis**
**Urban Co-operative Bank Ltd., Dehradun:**
* **Impact:** Operational restrictions are imposed, limiting the bank's ability to conduct regular business activities, including lending, investments, and deposit handling.
* **Action Required:** The bank must comply with the RBI's directions and display a copy of the RBI directive on its website/premises.
**Depositors of Urban Co-operative Bank Ltd., Dehradun:**
* **Impact:** Depositors face restrictions on withdrawing funds from their accounts. However, they are eligible for deposit insurance coverage up to ₹5,00,000.
* **Action Required:** Depositors should contact the bank for information on deposit insurance claims and await verification.
**Reserve Bank of India (RBI):**
* **Impact:** The RBI is actively monitoring the bank and may take further actions, including modifications to the directions.
* **Action Required:** The RBI will continue to monitor the bank's financial position and take necessary actions as warranted.
Key Entities Referenced
Urban Co-operative Bank Ltd., Dehradun: A bank based in Dehradun, India, which is the subject of the directions issued by the RBI.
Banking Regulation Act, 1949: An Indian law that regulates banking companies. Sections 35 A and 56 are relevant to the directions issued to the Urban Co-operative Bank Ltd., Dehradun.
Reserve Bank of India (RBI): The central bank of India, which issued the directions restricting the operations of the Urban Co-operative Bank Ltd., Dehradun.
Deposit Insurance and Credit Guarantee Corporation (DICGC): An organization that provides deposit insurance for bank depositors in India. The DICGC is mentioned in relation to the insurance coverage available to depositors of the Urban Co-operative Bank Ltd., Dehradun.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 10, 2026
Directions under Section 35 A read with Section 56 of the Banking
Regulation Act, 1949 (AACS)– Urban Co-operative Bank Ltd., Dehradun
It is hereby notified for the information of the public that in exercise of powers vested
in it under sub-section (1) of Section 35 A of the Banking Regulation Act, 1949, read
with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative
Societies), the Reserve Bank of India (RBI) vide Directive Ref. No.
DDN.DOS.QAG.No.S168/03-04-007/2025-2026 dated February 09, 2026, has issued
certain Directions to Urban Co-operative Bank Ltd., Dehradun, (“the bank”),
whereby, as from the close of business on February 10, 2026, the bank shall not,
without prior approval of RBI in writing, grant or renew any loans and advances, make
any investment, incur any liability including borrowal of funds and acceptance of fresh
deposits, disburse or agree to disburse any payment whether in discharge of its
liabilities and obligations or otherwise, enter into any compromise or arrangement and
sell, transfer or otherwise dispose of any of its properties or assets except as notified
in the RBI Direction dated February 09, 2026, a copy of which has been directed to be
displayed on the bank's website/premises for perusal by interested members of the
public. Considering the bank's present liquidity position, the bank has been directed
not to allow withdrawal of any amount from savings bank or current accounts or
any other account of a depositor but is allowed to set off loans against deposits subject
to the conditions stated in the above RBI Directions. The bank may incur expenditure
in respect of certain essential items such as salaries of employees, rent, electricity
bills, etc., as specified in the said Directions.
2. These Directions are necessitated due to supervisory concerns emanating from the
recent material developments in the bank, and to protect the interests of depositors of
the bank.
3. The eligible depositors would be entitled to receive deposit insurance claim amount
of their deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) in the
same capacity and in the same right, from the Deposit Insurance and Credit Guarantee
Corporation (DICGC), as applicable under the provisions of the DICGC Act, 1961,
based on submission of willingness by the depositors concerned and after due
verification. The depositors may contact the bank officials for further information.
Details may also be accessed on the DICGC website: www.dicgc.org.in.4. The issue of the above Directions by the RBI should not per se be construed as
cancellation of the banking license by the RBI. The bank will continue to undertake
banking business subject to restrictions specified in the said Directions till its financial
position improves. The RBI continues to monitor the position of the bank and will take
necessary actions including modifications of these Directions, as warranted,
depending upon circumstances and in the interest of the depositors.
5. These Directions shall remain in force for a period of six months from the close of
business on February 10, 2026, and are subject to review.
(Brij Raj)
Press Release: 2025-2026/2086 Chief General Manager