**Executive Summary**
This press release from the Reserve Bank of India (RBI) announces directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, to The Pusad Urban Cooperative Bank Ltd., Pusad, effective November 07, 2025. These directions impose restrictions on the bank's operations due to its deteriorating liquidity position. The directions are valid for six months and are subject to review.
**Key Points / Main Content**
* **RBI Directives:**
* RBI has issued directions to The Pusad Urban Cooperative Bank Ltd., Pusad, due to concerns about its liquidity position.
* The directives are effective from the close of business on November 07, 2025.
* The complete RBI Direction dated November 06, 2025, must be displayed on the bank's website/premises.
* **Restrictions Imposed on the Bank:**
* The bank cannot grant or renew loans and advances without prior written approval from RBI.
* The bank cannot make investments, incur liabilities (including borrowing or accepting deposits), disburse payments, or dispose of assets without prior written approval from RBI.
* The bank is allowed to set off loans against deposits.
* The bank is permitted to incur expenditure for essential items like salaries, rent, and electricity.
* **Withdrawal Limit for Depositors:**
* Depositors can withdraw a maximum of ₹5,000/- from their savings, current, or other accounts.
* **Deposit Insurance:**
* Eligible depositors are entitled to receive deposit insurance claim amount of their deposits up to ₹5,00,000/- from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
* The claim is subject to submission of willingness by depositors and verification.
* Depositors can contact bank officials for information or visit the DICGC website: www.dicgc.org.in.
* **General Information:**
* The directions do not constitute a cancellation of the banking license. The bank will continue to undertake banking business subject to the specified restrictions.
* RBI will continue to monitor the bank and take necessary actions, including modifications to the directions.
* The directions remain in force for six months from November 07, 2025, and are subject to review.
**Impact Analysis**
**Impact**: *The Pusad Urban Cooperative Bank Ltd.*
* The bank is now under specific restrictions and has limited operational freedom.
* The bank's ability to conduct business operations will be heavily impacted due to the restrictions imposed.
**Action Required**:
* The bank must comply with all directions issued by the RBI.
* The bank must display the full RBI Direction dated November 06, 2025, on its website/premises.
* The bank must cooperate with the RBI in monitoring its financial position.
**Impact**: *Depositors of The Pusad Urban Cooperative Bank Ltd.*
* The depositors' ability to access their funds is restricted.
* Eligible depositors can claim insurance for their deposits.
**Action Required**:
* Depositors should contact the bank for information.
* Eligible depositors can submit their willingness to DICGC and start the claim process to receive the insured amount (up to ₹5,00,000/-).
Key Entities Referenced
Reserve Bank of India (RBI): The central bank of India, which issued the directive and is exercising powers under the Banking Regulation Act.
Banking Regulation Act, 1949: The primary law under which the directions are issued, specifically referencing Sections 35 A and 56.
The Pusad Urban Cooperative Bank Ltd., Pusad: The specific bank to which the directions and restrictions apply.
Deposit Insurance and Credit Guarantee Corporation (DICGC): The entity responsible for providing deposit insurance to eligible depositors of the bank.
DICGC Act, 1961: The governing act for the Deposit Insurance and Credit Guarantee Corporation (DICGC).
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
November 07, 2025
Directions under Section 35 A read with Section 56 of the Banking Regulation
Act, 1949 – The Pusad Urban Cooperative Bank Ltd., Pusad
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.
NGP.DOS.SSM3.No.S611/5-04-166/2025-26 dated November 06, 2025, has issued
certain Directions to The Pusad Urban Cooperative Bank Ltd., Pusad (“the bank”)
whereby, as from the close of business on November 07, 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 November 06, 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 present liquidity position, the bank has been
directed to permit withdrawal of a sum not exceeding ₹5,000/- (Rupees 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. The aforesaid Directions have been imposed on the bank on account of its
deteriorating liquidity position. 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 liquidity issue 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 upto 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 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 November 07, 2025 and are subject to review.
(Brij Raj)
Press Release: 2025-2026/1472 Chief General Manager