RBI Lifts Lending Ban On Pune Sahakari Bank

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The Reserve Bank Of India Has Withdrawn Its Earlier Restrictions On Pune Sahakari Bank, Allowing It To Resume Granting New Loans And Accepting Fresh Deposits From October 16, 2025. The Decision Follows Improvements In The Bank’s Financial Health And Regulatory Compliance.

Regulatory relief signals recovery

The Reserve Bank of India (RBI) has officially revoked its directive that previously barred Pune Sahakari Bank from issuing new loans and accepting fresh deposits. The restrictions, imposed due to concerns over financial stability and compliance, have now been lifted effective October 16, 2025.

This move indicates that the bank has made satisfactory progress in addressing regulatory concerns, including capital adequacy, asset quality, and governance standards.

Background of the restrictions

The RBI had earlier placed stringent curbs on Pune Sahakari Bank under Section 35A of the Banking Regulation Act, citing operational and financial irregularities. These measures were aimed at protecting depositors and ensuring systemic stability. Over the past year, the bank undertook corrective actions including restructuring its loan book, improving provisioning, and enhancing internal controls.

Key highlights from the RBI’s decision

- RBI withdraws restrictions on Pune Sahakari Bank effective October 16, 2025
- Bank can now resume issuing new loans and accepting fresh deposits
- Restrictions were initially imposed under Section 35A of the Banking Regulation Act
- Revocation follows improved financial metrics and compliance efforts
- Bank restructured operations and strengthened governance during the restriction period
- Move restores full banking functionality and boosts depositor confidence

Implications for customers and stakeholders

The lifting of restrictions is expected to restore customer trust and improve the bank’s operational momentum. Depositors can now make fresh contributions, and borrowers will have access to new credit lines. The bank’s management has welcomed the RBI’s decision and reaffirmed its commitment to prudent banking practices.

Industry observers view this development as a positive sign of regulatory responsiveness and institutional recovery.

Sources: RBI Press Release, Business Standard, Economic Times, Moneycontrol