Directions under Section 35A read with section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies) – The Amanath Co-operative Bank Ltd., Bangalore

The Reserve Bank of India (RBI) has issued directives to The Amanath Urban Co-operative Bank Ltd., Bangalore, under the Banking Regulation Act, 1949. Effective June 12, 2024, the bank is prohibited from granting or renewing loans, making investments, accepting deposits, and engaging in various financial activities without prior RBI approval. \r

Limited withdrawals up to ₹60,000 are permitted, and essential expenditures are allowed. These measures stem from supervisory concerns regarding the bank's poor financials, negative net worth, and governance issues, particularly in its One Time Settlement scheme. Depositors are assured insurance claims up to ₹5,00,000 from DICGC within 90 days. \r

The bank's operations continue under RBI monitoring, with directions subject to review after six months.