Abhyudaya Bank Under RBI: Is Your ₹5L Safe?

RBI has extended its takeover of Abhyudaya Co-operative Bank's board for another year due to governance problems. If you bank here, your deposits are covered up to ₹5 lakh under DICGC insurance. Here's what to do.

Here's what happened: RBI has extended its supersession of Abhyudaya Co-operative Bank's elected board for a second consecutive year, keeping an RBI-appointed administrator in charge of the Mumbai-based lender.. The original board takeover happened in November 2023 after RBI flagged serious governance and compliance failures at the bank, a move that restricts normal board-level decision-making.. Co-operative bank depositors are protected only up to ₹5 lakh per person per bank under DICGC insurance — any amount above this limit carries full default risk during such oversight periods..

What you should do: Check your total balance across all accounts and FDs at Abhyudaya Co-operative Bank — if it exceeds ₹5 lakh, transfer the surplus to an RBI-licensed scheduled commercial bank immediately.. Verify your DICGC coverage by visiting dicgc.org.in — confirm your bank is a registered insured institution and understand what the ₹5 lakh limit covers (principal + interest combined).. Avoid locking new long-term fixed deposits at any co-operative bank currently under RBI administrative oversight — keep fresh deposits in institutions with a clean, full board structure..

The ₹5 lakh DICGC limit applies per depositor per bank — not per account. Splitting money across multiple accounts at the SAME bank gives zero extra protection.

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