The Reserve Bank of India (RBI) has imposed several restrictions on Samarth Urban Co-operative Bank Ltd., Osmanabad, under Section 35A read with Section 56 of the Banking Regulation Act, 1949, effective from the close of business on October 7, 2025.

According to the RBI directive dated October 6, 2025 (Ref. No. NGP.DOS.SSM1.No.S581/15-04-381/2025-2026), the bank is prohibited, without prior written approval from the RBI, from granting or renewing loans, making investments, incurring liabilities, accepting fresh deposits, or disbursing payments. It is also barred from entering into any compromise or selling or transferring its properties or assets, except as permitted under the RBI’s directions.

Citing the bank’s current liquidity stress, the RBI has directed that no withdrawals will be allowed from any savings, current, or other depositor accounts. However, the bank is permitted to set off loans against deposits under specific conditions outlined in the directive. The bank may also incur expenditure on essential items such as employee salaries, rent, and electricity bills.

The RBI stated that despite its engagement with the bank’s Board and senior management to improve operations, the lack of adequate corrective measures to address supervisory concerns and safeguard depositor interests has necessitated the imposition of these restrictions.

Eligible depositors will be entitled to receive deposit insurance coverage of up to ?5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961, upon due verification and submission of necessary documentation. Further details are available with the bank and on the DICGC website (www.dicgc.org.in

).

The central bank clarified that these directions do not amount to cancellation of the bank’s license. The bank will continue to operate under the imposed restrictions until its financial condition improves. The RBI will continue to monitor the situation and may modify or withdraw the directions as warranted in the interest of depositors.

The restrictions will remain in force for six months from October 7, 2025, and are subject to periodic review.