Padmashri Dr. Vithalrao Vikhe Patil Co-operative Bank Ltd., Nashik has come under stringent regulatory restrictions after the Reserve Bank of India (RBI) imposed directions under Section 35A of the Banking Regulation Act, 1949, citing supervisory concerns arising from recent material developments in the bank.
Effective from the close of business on July 17, 2026, the bank has been barred from granting or renewing loans, making investments, accepting fresh deposits, borrowing funds, or disposing of assets without prior written approval from the RBI.
It has also been restrained from making payments or entering into compromises except as specifically permitted under the RBI’s directions.
To safeguard depositors while preserving liquidity, the RBI has allowed withdrawals of up to Rs 1 lakh per depositor from savings, current or any other deposit accounts. The bank has, however, been permitted to meet essential expenses such as employees’ salaries, rent and electricity bills.
The RBI clarified that the restrictions do not amount to cancellation of the bank’s licence. Eligible depositors will continue to enjoy deposit insurance coverage of up to Rs 5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to applicable norms and verification.
The directions will remain in force for six months and will be reviewed depending on the bank’s financial position and in the interest of depositors.
