The Reserve Bank of India (RBI) has placed stringent restrictions on Nashik Jilha Mahila Vikas Sahakari Bank Ltd., Nasik, under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The directive, issued on December 8, 2025, comes into effect from the close of business on December 9, 2025.
Under the order, the bank cannot grant or renew loans, make investments, incur liabilities, accept fresh deposits, or disburse payments without prior RBI approval. The bank has also been restricted from disposing of any assets except as permitted in the directive.
Due to the bank’s liquidity stress, customers will be allowed to withdraw only up to Rs 35,000 from all their accounts combined. However, loans may be set off against deposits under specified conditions. Essential expenditures such as salaries, rent, and electricity payments are permitted.
The RBI stated that the restrictions were imposed due to “supervisory concerns” arising from recent developments and to safeguard depositor interests. Eligible depositors can claim insurance up to Rs 5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC) after due verification.
The central bank clarified that this action does not amount to cancellation of the bank’s license. The bank will continue operations under restrictions for six months, subject to review, as the RBI monitors its financial position.
