Reserve Bank of India has imposed strict operational restrictions on Nagar Sahakari Bank for 6 months, including limiting withdrawals to ₹10,000 per depositor, citing supervisory and depositor protection concerns, as per PTI news report.
Under the restrictions, customers will be allowed to withdraw a maximum of ₹10,000 from savings, current or any other deposit accounts.
The central bank also barred the cooperative bank from granting fresh loans, accepting new deposits, or raising additional funds without prior written approval from RBI.
Despite the restrictions, the bank will continue routine operations within the permitted framework and may spend on essential operational expenses including employee salaries, rent and electricity bills.
The directions came into effect from the close of business on Monday.
According to the RBI, the action became necessary following recent developments linked to the bank’s financial and supervisory position.
The regulator stated that it had previously engaged with the board and senior management of the bank to improve operational functioning and depositor safeguards.
However, RBI said the bank failed to make “concrete efforts” to adequately address the concerns raised by the regulator, leading to the latest restrictions.
The central bank clarified that the measures are intended to safeguard depositor interests and should not be viewed as cancellation of the bank’s licence.
Eligible depositors of Nagar Sahakari Bank will continue to receive insurance protection of up to ₹5 lakh through Deposit Insurance and Credit Guarantee Corporation.
RBI added that the bank will remain operational under the imposed restrictions while the regulator continues monitoring its financial condition and compliance progress.
The central bank may also modify the directions or take further action depending on future developments and depositor interests.
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The latest RBI action places Nagar Sahakari Bank under tighter regulatory oversight as the central bank attempts to stabilise operations and protect depositors amid ongoing supervisory concerns.
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Published on: May 19, 2026, 10:08 AM IST
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