In a major win for the cooperative banking sector, the Reserve Bank of India has lifted the restrictions it had placed on Pimpri Chinchwad Cooperative Bank under the Supervisory Action Framework (SAF).
Based in Pune and headed by Chairman Shirish Deshpande, this bank had been under the SAF for several years.
The RBI’s decision reflects the bank’s improved financial standing, especially as of March 31, 2024. In a letter to the bank’s CEO, the central bank noted, “Given the bank’s enhanced financial position, the supervisory restrictions imposed on it are hereby lifted.”
The RBI had originally put these SAF restrictions in place with a letter dated June 16, 2021, due to concerns about the bank’s financial health.
However, under Deshpande’s guidance, the bank has not only moved past the SAF framework but has also successfully merged with Pune Commercial Cooperative Bank—a strategic move aimed at expanding and consolidating its operations.
With these restrictions now lifted, the bank is expected to enjoy greater operational freedom and set the stage for future growth.
