In a significant development, the Reserve Bank of India (RBI) has withdrawn the regulatory directions imposed on Padmashri Dr. Vithalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra, with effect from the close of business on May 16, 2025.
The bank had been under RBI Directions since May 18, 2018, under Section 35A read with Section 56 of the Banking Regulation Act, 1949, due to concerns over its financial health. These restrictions were initially imposed for a period of six months and were extended and modified periodically, with the latest extension valid till May 17, 2025.
After a comprehensive review of the bank’s financial position, the RBI stated that it is now satisfied with the improvements made and has deemed it appropriate, in the public interest, to lift the restrictions.
The withdrawal of Directions is expected to restore full operational autonomy to the bank, enabling it to resume normal banking activities. This move comes as a relief to depositors and stakeholders who had been under uncertainty for the past several years.