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Panic Among Depositors as Withdrawal Limit Fixed at ₹10,000
Pooja Srivastava Anytime News Network
Reserve Bank of India has imposed strict operational restrictions on Nagar Sahakari Bank Ltd. following serious supervisory concerns linked to the bank’s functioning and liquidity position. The action has triggered anxiety among depositors across Etawah and nearby districts.
Under the RBI directions effective from May 18, 2026, the cooperative bank has been barred from issuing or renewing loans, accepting fresh deposits, making investments, borrowing funds, or disposing of assets without prior approval from the central bank. Customers have also been restricted to withdrawing only up to ₹10,000 from their accounts.
The RBI stated that repeated engagement with the bank’s board and senior management failed to produce meaningful corrective measures. Due to the bank’s inability to address supervisory concerns and safeguard depositor interests, the regulator decided to enforce immediate restrictions under the Banking Regulation Act.
The move has sparked panic among account holders, many of whom are worried about the safety of their savings. However, RBI clarified that eligible depositors would receive insurance protection of up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to verification and procedural formalities.
Authorities have also clarified that the bank’s banking license has not been cancelled at this stage. The bank will continue limited operations under RBI monitoring while its financial condition is reviewed over the next six months. Experts believe the development reflects growing concerns over governance and financial discipline in parts of the cooperative banking sector.
