It is hereby notified for the information of the public that in exercise of powers vested in it under sub-section (1) of Section 35 A, read with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) vide Directive Ref. No. CO.DOS.SED.No.S6986/12-22-482/2025-2026 dated December 15, 2025, has issued certain Directions to Loknete R.D. (Appa) Kshirsagar Sahakari Bank Ltd, Niphad Tal. Niphad, Dist. Nashik, (“the bank”), whereby, as from the close of business on December 16, 2025, the bank shall not, without prior approval of RBI in writing, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI Direction dated December 15, 2025, a copy of which has been directed to be displayed on the bank's website/premises for perusal by interested members of the public. Considering the bank's present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor, but is allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions. The bank may incur expenditure in respect of certain essential items such as salaries of employees, rent, electricity bills, etc., as specified in the said Directions. 2. These Directions are necessitated due to material supervisory concerns emanating from developments in the bank, and to protect the interests of depositors of the bank. 3. The eligible depositors would be entitled to receive deposit insurance claim amount of their deposits up to a monetary ceiling of ₹5,00,000/- (Rupees Five Lakh only) in the same capacity and in the same right, from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as applicable under the provisions of the DICGC Act, 1961, based on submission of willingness by the depositors concerned and after due verification. The depositors may contact the bank officials for further information. Details may also be accessed on the DICGC website: www.dicgc.org.in. 4. The issue of the above Directions by the RBI should not per se be construed as cancellation of the banking license by the RBI. The bank will continue to undertake banking business subject to restrictions specified in the said Directions till its financial position improves. The RBI continues to monitor the position of the bank and will take necessary actions, including modifications of these Directions, as warranted, depending upon circumstances and in the interest of the depositors. 5. These Directions shall remain in force for a period of six months from the close of business on December 16, 2025 and are subject to review. (Brij Raj)
Chief General Manager Press Release: 2025-2026/1715 |