In a major regulatory breakthrough, the Reserve Bank of India (RBI) has officially withdrawn the Supervisory Action Framework (SAF) imposed on Karnataka’s leading cooperative lender-Tumkur Grain Merchants Co-operative Bank Limited.
The lifting of SAF restrictions after nearly four years reflects the bank’s strengthened financial fundamentals, improved governance standards, and strict compliance with regulatory directives. The move is being seen as a strong endorsement of the corrective measures undertaken by the bank’s management.
The RBI’s communication confirming the removal of SAF sparked celebrations within the bank, with the management and staff expressing immense relief and pride over the long-awaited development.
Meanwhile, the bank has significantly consolidated its financial position. It has achieved a robust business mix of around Rs 2,600 crore and is on track to post a gross profit of approximately Rs 45 crore by the end of the current financial year.
With regulatory constraints now lifted, the bank is poised to accelerate its growth plans, enhance customer outreach, and further strengthen its footprint across Karnataka’s cooperative banking landscape.
