RBI Freezes Desaiganj Nagari Cooperative Bank

RBI has frozen Desaiganj Nagari Cooperative Bank from August 27, 2026, blocking all withdrawals and fresh deposits.

Here's what happened: RBI has placed Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj under strict directions effective close of business August 27, 2026, blocking all withdrawals from savings, current, and all other depositor accounts.. The bank is prohibited from granting or renewing loans, accepting fresh deposits, making investments, incurring new liabilities, or disposing of any assets without prior written approval from RBI.. The directive was issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, via RBI Directive Ref. No. NGP.DOS.SSM 3.No.S276/15-02-156/2026-2027 dated August 25, 2026.. RBI states the action was necessitated by the bank's failure to address supervisory concerns and protect depositor interests despite prior engagement with the bank's Board and Senior Management..

What you should do: If you hold a deposit at Desaiganj Nagari Cooperative Bank, visit the branch immediately to read the full RBI directive, which must be displayed on the bank's premises or website.. Eligible depositors can claim deposit insurance up to ₹5 lakh through DICGC (Deposit Insurance and Credit Guarantee Corporation) — contact the bank or DICGC directly to initiate your claim if the bank remains unable to repay.. If you have both a loan and a deposit at this bank, be aware the bank is permitted to set off your loan against your deposit balance — review your account statements this week to understand your net position.. For unresolved grievances, file a complaint with RBI via the CMS portal at sachet.rbi.org.in or approach the RBI Ombudsman..

This directive directly affects all depositors — individuals, joint account holders, and businesses — who hold savings accounts, current accounts, or any other deposit accounts at Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj. Borrowers who also have deposits at the bank face an additional risk: the bank is authorised to set off outstanding loan balances against those deposits. Depositors at other cooperative banks or any other financial institution are not affected by this specific directive.

For complaints against banks or NBFCs, our RBI complaint guide explains the free RB-IOS 2026 route.