Case Brief
The Reserve Bank of India issued directions under Section 35A read with Section 56 of the Banking Regulation Act, 1949 to Sonpeth Nagari Sahakari Bank Maryadit, Sonpeth, effective from the close of business on July 30, 2025. The order prohibits the bank, without prior written RBI approval, from granting or renewing loans and advances, making investments, incurring liabilities including borrowings and acceptance of fresh deposits, disbursing payments, entering into compromises or arrangements, and selling or disposing of assets except as specified in the directions. RBI also restricted withdrawals from savings, current, and other depositor accounts, while allowing set-off of loans against deposits and certain essential expenses such as salaries, rent, and बिजली bills as permitted in the directions. RBI said the action followed supervisory engagement and the bank's lack of concrete efforts to address supervisory concerns and protect depositor interests. The directions are valid for six months from the close of business on July 30, 2025, subject to review.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- Co-operative bank
- Location