RBI Cancels Licence of Sarvodaya Co-operative Bank

RBI Cancels Licence of Sarvodaya Co-operative Bank

Bank: Sarvodaya Co-operative Bank Ltd, Mumbai

Effective: 12 May 2026

Key Points

• Legal Basis: Sections 22(4) & 56 of Banking Regulation Act, 1949
• Reasons: Inadequate capital, weak earning prospects, inability to repay depositors, non-compliance with Sections 11(1) & 22(3)
• Winding-up: Maharashtra Registrar of Co-operative Societies (RCS) to appoint liquidator
• Deposit Insurance: DICGC covers up to ₹5 lakh per depositor per bank (principal + interest; savings, current, FD, RD)

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UPSC Angle: Prelims – DICGC limit (₹5 lakh), Banking Regulation Act sections. Mains GS-III – banking regulation, RBI powers.

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