India, Oct. 9 -- The Reserve Bank of India (RBI) has issued regulatory directions to Baghat Urban Co-operative Bank Ltd., Solan, under Section 35A read with Section 56 of the Banking Regulation Act, 1949, citing concerns over the bank's liquidity and supervisory deficiencies. The directions, issued on October 6, 2025, came into effect from the close of business on October 8, 2025.
Under the new restrictions, the bank cannot, without prior written approval from RBI, grant or renew loans and advances, make investments, incur liabilities, accept fresh deposits, disburse payments, enter into compromises, or sell or transfer its assets, except as specified in the RBI directive. Considering the bank's liquidity position, depositors are allowed t...