In a written reply, Union Minister of State for Finance Pankaj Chaudhary said RBI had imposed the restrictions in October 2025 to safeguard depositors’ interests. The bank cannot grant fresh loans, accept new deposits or undertake major financial transactions without prior RBI approval. As of October 8, 2025, the bank had 70,849 depositors with deposits of Rs 467.46 crore, while 10,590 shareholders were affected by the restrictions. The Minister said no proposal has been received for the bank’s voluntary amalgamation with a stronger cooperative bank. So far, 12,653 depositors have received insurance payouts totalling Rs 191.57 crore, while claims worth Rs 102.28 crore remain pending for settlement.