Eligible depositors will receive insurance cover of up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation. The RBI clarified that the move does not amount to cancellation of the license.
The restrictions in the form of ‘Directions’ will come into effect from closing time on Tuesday and will remain in force for six months.
As per the directions, without the prior approval of the RBI, the co-operative bank cannot grant or renew any loans, make any investments, incur any liability or make any payment, whether or not in discharge of its liabilities and obligations.
“Considering the current liquidity position of the bank, the bank has been directed to permit withdrawal of an amount not exceeding Rs 35,000 of the total balance in savings or checking accounts or any other account of a depositor but may offset loans against deposits,” the Reserve Bank of India (RBI) said.
The RBI said it has been in touch with the board and senior management of Gauhati Cooperative Urban Bank in the recent past to improve its functioning.
However, the bank’s lack of concrete efforts to address supervisory concerns and protect the interests of the bank’s depositors made issuing the instructions necessary, she added.
The eligible depositors would be entitled to receive deposit insurance claim amount of their deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The RBI also said that the issuance of the instructions should not necessarily be construed as revocation of the banking license.
“The bank will continue to undertake banking business, subject to the restrictions specified in the said guidelines, until its financial position improves,” it added.
The RBI will continue to monitor the bank’s position and will take necessary action, including adjustments in guidelines, as necessary, depending on the circumstances and in the interest of depositors.
Published on December 18, 2025
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