**Executive Summary**
The Reserve Bank of India (RBI) issued directions to The Gauhati Cooperative Urban Bank Ltd. effective December 17, 2025, due to supervisory concerns and lack of concrete efforts to improve the bank's functioning and protect depositors' interests. These directions, issued under Section 35 A read with Section 56 of the Banking Regulation Act, 1949, impose restrictions on the bank's operations. The directions are set to last 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 without prior RBI approval.
* The bank is restricted from making investments or incurring liabilities, including accepting fresh deposits.
* The bank cannot disburse payments, enter into compromises, or dispose of assets except as notified in the RBI direction.
* **Withdrawal Limit:**
* Depositors can withdraw a maximum of ₹35,000 from their savings, current, or other accounts.
* The bank is permitted to offset loans against deposits under specific conditions outlined in the RBI directions.
* **Deposit Insurance:**
* Eligible depositors can receive deposit insurance claims up to ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
* Claims are applicable under the DICGC Act, 1961, based on depositors' willingness and verification.
* Depositors can contact bank officials or visit the DICGC website (www.dicgc.org.in) for more information.
* **Continuity of Banking License:**
* The issuance of these Directions should not be interpreted as a cancellation of the bank's license.
* The bank will continue to operate, subject to the restrictions outlined in the Directions, until its financial position improves.
* **RBI Oversight:**
* The RBI will continue to monitor the bank's financial status and take necessary actions, including modifying the Directions, as needed.
**Impact Analysis**
**The Gauhati Cooperative Urban Bank Ltd.**
**Impact:**
The bank faces operational restrictions, limiting its ability to conduct normal business activities like lending, accepting deposits, and making investments. It must also ensure compliance with the withdrawal limit for depositors.
**Action Required:**
The bank must display the RBI Direction on its website/premises for public perusal and adhere to all restrictions. It also needs to cooperate with the DICGC regarding deposit insurance claims.
**Depositors of The Gauhati Cooperative Urban Bank Ltd.**
**Impact:**
Depositors face limitations on withdrawals and potential uncertainty regarding the bank's future. However, they are also protected by deposit insurance up to a specified limit.
**Action Required:**
Depositors should be aware of the withdrawal limit. Eligible depositors should express their willingness to claim deposit insurance and follow the verification process for receiving their insured amount.
Key Entities Referenced
Reserve Bank of India (RBI): The central bank that issued the Directions and is responsible for overseeing the bank's operations.
The Gauhati Cooperative Urban Bank Ltd: The bank subject to the Directions issued by the RBI due to concerns about its financial health.
Banking Regulation Act, 1949: The act under which the RBI issued the Directions, specifically Section 35 A read with Section 56.
Deposit Insurance and Credit Guarantee Corporation (DICGC): The corporation responsible for insuring deposits up to ₹5,00,000.
Directions: Instructions issued by RBI restricting The Gauhati Cooperative Urban Bank Ltd.'s operations.
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
December 17, 2025
Directions under Section 35 A read with Section 56 of the Banking Regulation
Act, 1949 – The Gauhati Cooperative Urban Bank Ltd
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.
GWH.DOS.ADM.No.S233/01-10-101/2025-2026 dated December 17, 2025, has
issued certain Directions to The Gauhati Cooperative Urban Bank Ltd., whereby,
as from the close of business on December 17, 2025, 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 December 17, 2025, 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 current liquidity position, the bank has
been directed to permit withdrawal of a sum not exceeding ₹35,000/- (Rupees
Thirty-Five Thousand only) of the total balance held in 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. RBI has in the recent past engaged with the Board and Senior Management of the
bank for improvement in its functioning. However, lack of concrete efforts taken by
the bank to address the supervisory concerns and to protect the interest of depositors
of the bank, necessitated issuance of these Directions.
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 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 take2
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 December 17, 2025, and are subject to review.
(Brij Raj)
Press Release: 2025-2026/1723 Chief General Manager