Summary of this article
RBI imposes operational restrictions on Gauhati cooperative bank
Depositor withdrawals capped at Rs 35,000
Deposit insurance cover available up to Rs 5 lakh
The Reserve Bank of India (RBI) has imposed operational restrictions on The Gauhati Cooperative Urban Bank, with effect from December 17, 2025. The order was imposed due to the liquidity condition of the bank and other supervisory issues not being resolved; the restrictions will continue for a period of six months.
Loans, Receiving Deposits, And Payments
In accordance with the directions issued under the Banking Regulation Act of 1949, the bank is not allowed to extend or renew any loans and advances, make any investment, incur any liability, or accept any fresh deposits without the prior written approval of the RBI. The bank is also not allowed to make any payments or enter into any compromise or arrangement or sell or transfer or dispose of the assets of the bank with the exception stated in the directions from the regulatory authority.
The bank is further directed to put up a copy of the above directions on their website and on their premises to enable depositors and the public to read them.
Withdrawal Limit Restricted
In consideration of the liquidity situation in the bank, RBI has allowed the customers to withdraw an amount not exceeding Rs 35,000 out of the aggregate balance lying in savings, current, or any other account maintained with the bank. RBI has permitted the bank to set off the outstanding loan against the deposits, subject to conditions specified by the directions issued.
The bank can also incur expenses on necessary business requirements, like payment of salaries to employees, rent, and electricity charges, within the boundaries specified by the central bank.
Supervisory Concerns Mentioned
RBI has also asserted that it had recently interacted with the board as well as the top management of the bank with a view to improving the working of the bank. However, since there has not been sufficient corrective action regarding their concerns, these guidelines were imposed to safeguard the interests of depositors.
Deposit Insurance Cover Available
The depositors are entitled to the deposit insurance coverage up to the gross amount of Rs 5 lakh. This is within the provisions of the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961. This amount would be paid by the DICGC after fulfilling the formality of willingness by the depositors.
Depositors may contact the bank officials for further information or for more details about how to access through the DICGC website.
Banking License Not Cancelled
RBI has further clarified that the issuance of these directions cannot be treated as the cancellation of the banking licence of the bank. The Gauhati Co-operative Urban Bank will continue to carry out its banking activity within the restrictions imposed by the above-mentioned directions. RBI will also be constantly monitoring the financial position of banks and will modify these directions again, as found appropriate.
