Document title: Directions under Section 35A to Padmashri Dr. Vithalrao Vikhe Patil Co-operative Bank Ltd.
Issuing authority: Reserve Bank of India (RBI)
Reference number: CO.DOS.SED.No.S2909/12-22-395/2026-2027
Date: 17 July 2026
Banking and Credit
As of the close of business on 17 July 2026, the bank shall not, without prior written approval of the RBI, grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement, or sell, transfer or otherwise dispose of any of its properties or assets, except as specifically notified in the RBI Direction dated 16 July 2026.
The bank is permitted to allow withdrawal of a sum not exceeding ₹1,00,000 (Rupees One Lakh only) from savings, current or any other account of a depositor. It may also set off loans against deposits subject to the conditions stated in the Directions. Expenditure on essential items such as salaries of employees, rent, electricity bills and similar operational costs is allowed as specified in the Directions.
Financial Stability and Inclusion
Eligible depositors are entitled to receive a deposit‑insurance claim amount of up to ₹5,00,000 (Rupees Five Lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the DICGC Act, 1961, based on submission of willingness by the depositors concerned and after due verification. Depositors may contact bank officials for further information, and details are also available on the DICGC website (www.dicgc.org.in).
The issuance of these Directions should not be construed as a cancellation of the bank’s licence. The bank will continue to undertake banking business subject to the specified restrictions until its financial position improves. The RBI will continue to monitor the bank’s position and may modify the Directions as warranted.
Regulatory and Policy Measures
These Directions shall remain in force for a period of six months from the close of business on 17 July 2026 and are subject to review. The RBI reserves the right to modify, relax or lift the restrictions depending on the bank’s liquidity situation and supervisory assessment.
The RBI’s action places a temporary operational ceiling on Padmashri Dr. Vithalrao Vikhe Patil Co‑operative Bank to safeguard depositor interests, limit outflows, and ensure that essential expenses are met while maintaining deposit‑insurance coverage and ongoing supervisory oversight.