The Yashwant Cooperative Bank Limited, Phaltan

RBI cancelled the licence of The Yashwant Co-operative Bank Ltd., Phaltan. The bank must cease banking business immediately and liquidation proceedings were requested.

The bank can no longer conduct banking business, including accepting or repaying deposits, from May 19, 2026. Liquidation is expected to follow, and eligible depositors may receive insurance coverage up to ₹5 lakh under DICGC, subject to applicable law and claim conditions. Depositors are directly affected by the closure and liquidation process.

• Section 22 read with Section 56 of the Banking Regulation Act, 1949
• Section 11(1)
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949

+7 more in the case brief

RBI has extended its existing Directions against The Yashwant Co-operative Bank Ltd., Phaltan for another three months. The other terms of the directive remain unchanged.

The bank remains under RBI-imposed operating directions until close of business on May 28, 2026, subject to review. Any existing restrictions under the directive continue to apply, affecting the bank and its customers/depositors as per the unchanged terms of the order.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI extended the existing directions on The Yashwant Co-operative Bank Ltd., Phaltan for three more months. The directive now runs until February 28, 2026.

The bank remains subject to the same RBI-imposed operating conditions through February 28, 2026, unless modified or withdrawn earlier on review. This continues the restriction on the bank’s operations and affects customers and counterparties to the extent covered by the underlying directions.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed Yashwant Co-operative Bank, Phaltan, under Section 35A directions restricting core banking operations. The bank cannot grant fresh loans, accept fresh deposits, or allow withdrawals except as specifically permitted.

The bank must operate under tight RBI-imposed restrictions for six months unless modified earlier. Depositors cannot freely withdraw funds, and the bank cannot expand lending, investments, liabilities, or asset disposals without RBI approval, though certain essential payments and limited set-offs remain permitted. The directions are intended to protect depositors while RBI monitors the bank's financial position.

• Section 35 A read with Section 56 of the Banking Regulation Act, 1949
• DICGC Act, 1961

RBI imposed a ₹2 lakh penalty on The Yashwant Cooperative Bank Limited, Phaltan. The penalty was for non-compliance with RBI directions on income recognition, asset classification, provisioning and related matters.

The bank must absorb the ₹2 lakh penalty; the release does not announce any operational restriction or customer-facing ban. The action is a regulatory enforcement measure for past non-compliance, with no stated forward-looking impact on depositors or borrowers beyond continued compliance expectations.

• Section 47 A (1) (c)
• Section 46 (4) (i)
• Section 56 of the Banking Regulation Act, 1949

RBI imposed a ₹1 lakh penalty on The Yashwant Co-operative Bank Limited, Phaltan, Maharashtra. The penalty was for breaches of RBI/BR Act provisions and exposure-limit/compliance requirements.

The bank must absorb the monetary penalty and address the underlying compliance weaknesses around unsecured advances exposure limits, group borrower concentration, and timely submission of compliance to RBI. The action does not itself impose an ongoing operational restriction, but it signals supervisory concern and may affect future compliance scrutiny.

• Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)