The Reserve Bank of India (RBI) has imposed stringent restrictions on Ashok Sahakari Bank Ltd., Ahmednagar, citing serious supervisory concerns and the bank’s present liquidity position.
With effect from the close of business on August 28, 2026, the bank has been barred from allowing customers to withdraw any amount from savings, current or other deposit accounts without prior RBI approval. The bank has also been restricted from granting or renewing loans, making investments, accepting fresh deposits, borrowing funds or disposing of assets, except as specifically permitted under the RBI directions.
The RBI said the restrictions were necessitated by recent material developments and the bank’s lack of concrete efforts to address supervisory concerns and protect depositors’ interests, despite earlier engagement with its Board and senior management.
Eligible depositors can claim deposit insurance of up to Rs 5 lakh from DICGC, subject to applicable conditions and verification.
Importantly, RBI clarified that the directions do not amount to cancellation of the bank’s banking licence. The restrictions will remain in force for six months from August 28, 2026, subject to review.
