The Reserve Bank of India has extended restrictions on The Yashwant Sahakari Bank Limited, Phaltan, in Satara district by an additional three months. Initially imposed for six months on May 28, the curbs will now remain in force from November 29 to February 28, 2026.
The RBI said the extension has been issued “in public interest”.
Regulatory Action Under Banking Regulation Act
The central bank had invoked its powers under Section 35A(1) and Section 56 of the Banking Regulation Act to impose the restrictions from 28 May. With the latest order, these directives will continue for an additional three months.
What The Restrictions Involve
Under the curbs announced on May 28, 2025, the bank has been barred from renewing loans, making fresh investments, accepting deposits, or issuing new credit facilities without prior written approval from the RBI. It has also been prohibited from selling its assets.
The measures were enforced due to the bank’s weak financial position.
Political Pressure Over Bank Fraud Case
BJP MP Medha Kulkarni had taken an aggressive stance over alleged irregularities linked to Karad’s Yashwant Cooperative Bank. She demanded the seizure of properties belonging to former State Cooperative Council president and BJP leader Shekhar Charegaonkar, triggering significant political unrest. Kulkarni had visited Karad to assess the condition of depositors and borrowers affected by the crisis.
Rs 112-Crore Fraud Case: FIR Against 50 Individuals
A fraud amounting to Rs 112,10,57,481 was uncovered at the bank, leading to a case being registered against 50 individuals, including the then bank chairman and former State Cooperative Council president Shekhar Charegaonkar, at the Karad City Police Station.
The complaint, filed by Pune-based government chartered accountant Mandar Deshpande, covers alleged embezzlement during the audit period from 1 April 2024 to 31 March 2025, as well as prior years stretching from 1 April 2018 to 31 March 2024.
