The Reserve Bank of India (RBI) has withdrawn the regulatory restrictions imposed on the Karmala Urban Co-operative Bank Ltd., Solapur, with effect from the close of business on April 9, 2025. The decision follows a comprehensive review of the bank’s financial position, which the RBI found satisfactory for the relaxation of regulatory measures.
The bank had been under RBI Directions since July 29, 2022, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Initially imposed for six months, these restrictions were intended to safeguard depositors and ensure financial stability within the bank. The directions were subsequently extended multiple times, most recently until April 29, 2025, as the RBI continued to monitor the bank’s recovery process.
With the latest review indicating improved financial health and operational stability, the RBI has deemed it appropriate, in the public interest, to lift the restrictions. The move is expected to restore full banking operations at Karmala Urban Co-operative Bank and bolster customer confidence.
The bank can now resume normal functioning, including the full range of banking services, without the limitations previously placed under RBI’s directive.
The Reserve Bank of India (RBI) has withdrawn the regulatory restrictions imposed on The Karmala Urban Co-operative Bank Ltd., Solapur, with effect from the close of business on April 9, 2025. The decision follows a comprehensive review of the bank’s financial position, which the RBI found satisfactory for the relaxation of regulatory measures.
The bank had been under RBI Directions since July 29, 2022, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Initially imposed for six months, these restrictions were intended to safeguard depositors and ensure financial stability within the bank. The directions were subsequently extended multiple times, most recently until April 29, 2025, as the RBI continued to monitor the bank’s recovery process.
With the latest review indicating improved financial health and operational stability, the RBI has deemed it appropriate, in the public interest, to lift the restrictions. The move is expected to restore full banking operations at Karmala Urban Co-operative Bank and bolster customer confidence.
The bank can now resume normal functioning, including the full range of banking services, without the limitations previously placed under RBI’s directive.
