The Reserve Bank of India (RBI) has extended restrictions on Kshirsagar Sahakari Bank for another three months, from the close of business on June 16, 2026, to the close of business on September 16, 2026.
During this period, the bank will not be able to provide loans without the written permission or approval of the Reserve Bank of India. No investment will be made. The bank will not be able to accept new deposits. Apart from this, the bank will not be able to sell its assets.
Loknete R. D. (Appa) Kshirsagar Sahakari Bank Limited, Niphad Bank has been asked to post a copy of the RBI order on its website and office for public interest. Considering the current financial condition of the bank, the RBI has not allowed this bank to withdraw money from the savings or current accounts of its depositors. However, it has been approved to settle loans in lieu of deposits. However, the bank is allowed to incur essential expenses, including salaries of employees, light bills and rent.
Eligible depositors of the bank can make claims for deposits up to Rs 5 lakh as they have insurance cover on their deposits. Depositors will have to file a claim with the Deposit Insurance and Credit Guarantee Corporation. For more information in this regard, depositors will have to contact the bank officials. Apart from this, more information can also be obtained by visiting the DICG website.
