RBI Imposes Regulatory Restrictions on Two UCBs in Assam and Gujarat

Current Context: In mid-December 2025, the Reserve Bank of India (RBI) imposed strict regulatory restrictions on two Urban Cooperative Banks (UCBs) due to weak financial health and liquidity stress.

• On December 17, 2025, restrictions were placed on Gauhati Cooperative Urban Bank Ltd (Assam), capping withdrawals at ₹35,000 per depositor.
• On December 18, 2025, restrictions were imposed on Valsad Mahila Nagrik Sahakari Bank Ltd (Gujarat), where no withdrawals were permitted.
• These directions, issued under the Banking Regulation Act, 1949, will remain in force for six months, subject to review.
• Both banks are barred from granting loans, making fresh investments, accepting deposits, incurring liabilities, or disbursing payments without RBI approval.
• Depositors remain protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC), which covers up to ₹5 lakh per depositor.

Question:

Q.1 What was the maximum withdrawal limit allowed for depositors of Gauhati Cooperative Urban Bank Ltd under RBI restrictions?
a) ₹35,000
b) ₹25,000
c) ₹45,000
d) ₹50,000

Answer: a) RBI capped withdrawals at ₹35,000 per depositor for Gauhati Cooperative Urban Bank Ltd due to liquidity stress.