RBI restricts Nagar Sahakari Bank; caps withdrawals at Rs 10,000
📅 Published 20 May 2026 · May 2026
RBI restricts Nagar Sahakari Bank; caps withdrawals at Rs 10,000
What happened: RBI imposed directions under Banking Regulation Act, 1949 on Etawah-based Nagar Sahakari Bank due to deteriorating financial position; withdrawal capped at Rs 10,000 per depositor for six months.
Restrictions: No fresh lending, deposits or borrowing without RBI approval; allowed essential expenditures; deposit insurance (DICGC) applicable up to Rs 5 lakh.
Significance:
Regulatory action: Demonstrates RBI’s supervisory powers to protect depositors and manage systemic risk.
Cooperative bank sector: Highlights vulnerability and need for stronger governance.
UPSC relevance: Banking regulation, DICGC role, cooperative bank oversight.
Possible Q: Discuss regulatory challenges in supervising cooperative banks in India.