RBI cancels licence of Yashwant Co‑operative Bank (Maharashtra)

What: Reserve Bank of India cancelled licence of Yashwant Co‑operative Bank Ltd for inadequate capital, poor financial condition and regulatory violations; directions under Banking Regulation Act, 1949.

Aftermath: Bank barred from carrying out banking operations; winding‑up initiated; depositors eligible for DICGC cover up to Rs 5 lakh after liquidation.

Significance:

• Regulatory enforcement: RBI’s supervisory role in ensuring banking stability and depositor protection.

• Cooperative bank vulnerabilities: Governance, capital and risk management gaps in UCBs.

UPSC relevance: Banking regulation, cooperative bank oversight, DICGC.

Practice Q: Examine regulatory challenges in supervising urban co‑operative banks in India.