The Reserve Bank of India (RBI) has imposed regulatory Directions on The Gauhati Cooperative Urban Bank Ltd under Section 35A read with Section 56 of the Banking Regulation Act, 1949, with effect from the close of business on December 17, 2025. The action has been taken in view of the bank’s weak financial position and concerns relating to depositor protection.
As per the RBI directive, the bank will not be permitted to grant or renew loans and advances, make investments, accept fresh deposits, borrow funds, or dispose of its assets without prior written approval of the central bank. The bank is also barred from making payments or entering into any compromise or arrangement, except as specifically allowed under the Directions issued by RBI.
Considering the bank’s liquidity constraints, depositors have been allowed to withdraw a maximum of Rs 35,000 from their accounts. However, the bank may adjust outstanding loans against deposits, subject to conditions. The bank has been allowed to meet essential expenses such as salaries, rent, and electricity bills.
RBI stated that despite earlier engagements with the bank’s Board and management, adequate corrective steps were not taken.
Eligible depositors will be entitled to deposit insurance up to Rs 5 lakh from DICGC. RBI clarified that the Directions do not amount to cancellation of the bank’s licence and will remain in force for six months, subject to review.
