Padamshree Dr. Vitthalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra

The Reserve Bank of India issued directions under Section 35A of the Banking Regulation Act, 1949 read with Section 56 against Padamshree Dr. Vitthalrao Vikhe Patil Co-operative Bank Ltd., Nashik, Maharashtra. Under the directions, depositors may withdraw no more than ₹1,000 from each savings/current/other deposit account, subject to stipulated conditions. The bank may not, without prior written approval from RBI, grant or renew loans and advances, make investments, incur liabilities including borrowings and acceptance of fresh deposits, disburse payments, enter into compromises or arrangements, or sell/transfer/dispose of assets except as notified in the directions. RBI clarified that the order is not a cancellation of banking licence and that the bank will continue banking business with restrictions until its financial position improves.

The bank must operate under tight RBI-imposed constraints, including a cap on depositor withdrawals and a freeze on most new lending, deposits, borrowings, investments, payments, and asset disposals unless RBI approves otherwise. Depositors are directly affected by the withdrawal limit, while the bank’s ability to conduct normal business remains restricted until further modification by RBI.