RBI Imposes Six-Month Restrictions on Nashik Cooperative Bank; Depositors Can Withdraw Up to ₹1 Lakh
RBI Imposes Six-Month Restrictions on Nashik Cooperative Bank; Depositors Can Withdraw Up to ₹1 Lakh
18 July, 2026: The Reserve Bank of India (RBI) has imposed financial restrictions on Padmashri Vitthalrao Vikhe Patil Cooperative Bank Ltd. in Nashik for a period of six months, citing concerns over the bank’s financial position. The restrictions came into effect after the close of business on July 17, following an RBI order issued on July 16 under the Banking Regulation Act, 1949.
Under the directions, the cooperative bank has been barred from accepting fresh deposits, granting new loans, making fresh investments, selling assets or undertaking several other banking activities without prior approval from the RBI. The central bank said the action has been taken to safeguard the interests of depositors while monitoring the bank’s financial health.
Despite the restrictions, customers will continue to have access to a portion of their deposits. Eligible depositors will be allowed to withdraw up to ₹1 lakh from their savings or current accounts, subject to the conditions specified by the RBI. The bank has also been permitted to make payments towards employee salaries, rent, electricity bills and other essential operating expenses.
The RBI clarified that the restrictions do not amount to the cancellation of the bank’s banking licence. The cooperative bank will be allowed to resume normal operations if its financial position improves and the regulator is satisfied with its compliance.
The central bank also reminded depositors that eligible deposits up to ₹5 lakh are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. Customers have been advised to contact bank officials or visit the DICGC website for details regarding insurance coverage and claim procedures.
In a separate action, the RBI has also imposed monetary penalties on several financial institutions, including Muthoot Finance Ltd., Satya Micro Capital Ltd., Penn Imami Commosales Ltd., Dhani Loans and Services Ltd., Muthoot Vehicles and Asset Finance Ltd., and Avil Finance Services Ltd., for regulatory non-compliance.
