In a positive development for the urban cooperative banking sector, the Reserve Bank of India (RBI) has withdrawn all operational restrictions imposed on Pune Sahakari Bank Ltd., Shivajinagar, Pune, effective from the close of business on October 16, 2025.
The bank had been under directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 since March 9, 2023, owing to concerns over its financial health.
These directions restricted the bank’s regular operations and withdrawals, which were extended periodically, the last extension being up to December 10, 2025.
According to the RBI, the decision to lift the restrictions came after a thorough review of the bank’s financial position, with the regulator noting satisfactory improvement in its overall functioning. The RBI stated that it was “satisfied that in the public interest it is necessary to do so,” thereby restoring the bank’s full operational freedom.
The move is being viewed as a welcome sign for the cooperative banking ecosystem, reflecting a gradual recovery among smaller urban cooperative banks that had earlier faced regulatory constraints due to stressed finances.
