The Reserve Financial institution of India (RBI) has imposed stringent restrictions on Ashok Sahakari Financial institution Ltd., Ahmednagar, citing severe supervisory considerations and the financial institution’s current liquidity place.
With impact from the shut of enterprise on August 28, 2026, the financial institution has been barred from permitting prospects to withdraw any quantity from financial savings, present or different deposit accounts with out prior RBI approval. The financial institution has additionally been restricted from granting or renewing loans, making investments, accepting recent deposits, borrowing funds or disposing of belongings, besides as particularly permitted beneath the RBI instructions.
The RBI stated the restrictions have been necessitated by current materials developments and the financial institution’s lack of concrete efforts to deal with supervisory considerations and defend depositors’ pursuits, regardless of earlier engagement with its Board and senior administration.
Eligible depositors can declare deposit insurance coverage of as much as Rs 5 lakh from DICGC, topic to relevant circumstances and verification.
Importantly, RBI clarified that the instructions don’t quantity to cancellation of the financial institution’s banking licence. The restrictions will stay in power for six months from August 28, 2026, topic to evaluation.
