India, March 13 -- The Reserve Bank of India (RBI) has issued regulatory directions against Kanaka Pattana Sahakara Bank Niyamita, Davangere, restricting several banking operations due to supervisory concerns.
Under powers exercised through Section 35A read with Section 56 of the Banking Regulation Act, 1949, RBI directed that from the close of business on March 12, 2026, the bank will not be allowed to grant or renew loans and advances, make investments, incur liabilities, borrow funds, or accept fresh deposits without prior RBI approval.
The bank has also been barred from allowing withdrawals from savings, current, or other deposit accounts due to its current liquidity position. However, it has been permitted to set off loans against de...