RBI Imposes Restrictions on Nagar Sahakari Bank Ltd

May 20, 2026 #Nagar Sahakari Bank Ltd, #RBI, #Restrictions

RBI has imposed operational restrictions on Etawah-based Nagar Sahakari Bank Ltd.

The Reserve Bank of India (RBI) has imposed restrictions on Nagar Sahakari Bank Ltd, located in Etawah.
The bank is prohibited from:
- Granting or renewing loans and advances.
- Making investments.
- Incurring liabilities, including borrowing funds and accepting new deposits, without written approval from RBI.
The bank cannot disburse payments or sell assets except as specified in RBI’s directions dated May 15, 2026.
Depositors can withdraw up to Rs 10,000 from their accounts, but loans can be offset against deposits.
The bank is allowed to incur essential expenditures (e.g., salaries, rent, utilities).
These measures are due to supervisory concerns and aim to protect depositors’ interests.
The RBI had previously engaged with the bank’s management to address these issues, but insufficient improvements led to the restrictions.
Eligible depositors can receive insurance claims up to Rs 5,00,000 under the DICGC Act, based on verification and depositors’ willingness.
The restrictions will last for six months from May 18, 2026, and are subject to review.
Additionally, RBI imposed a monetary penalty of Rs 20,000 on the Aurangabad District Central Co-operative Bank Limited for non-compliance with credit reporting directions.