RBI Imposes Regulatory Restrictions on Two UCBs in Assam and GujaratIn December 2025, the Reserve Bank of India (RBI) imposed regulatory restrictions on two Urban Cooperative Banks (UCBs) : The Gauhati Cooperative Urban Bank Limited in Assam and The Valsad Mahila Nagrik Sahakari Bank Limited in Gujarat due to their weak financial position, liquidity stress, and unresolved supervisory concerns.
- The restrictions were issued in the form of ‘Directions’ under the Banking Regulation(BR) Act, 1949, and will remain in force for six months, subject to review.
- Eligible depositors can claim insurance up to Rs. 5 lakh, provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the DICGC Act, 1961.
About RBI Directions on Gauhati Cooperative Urban Bank:
Timeline: Directions effective from the close of business on December 17, 2025.
Withdrawals: Depositors may withdraw up to Rs. 35,000 across all deposit accounts, with the bank permitted to adjust outstanding loans against deposits.
About Directions on The Valsad Mahila Nagrik Sahakari Bank Limited:
Timeline: Directions effective from the close of business on December 18, 2025.
Withdrawals: No withdrawals are allowed from any deposit accounts, while the bank may adjust outstanding loans against deposits subject to RBI conditions.
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