Reserve Bank of India (RBI) Cancels Licence of Sarvodaya Co-operative Bank Ltd., Mumbai

Key facts

• The Reserve Bank of India (RBI) cancelled the licence of Sarvodaya Co-operative Bank Ltd., Mumbai, effective from the close of business on May 12, 2026.
• The RBI stated that the bank lacks adequate capital and earning prospects, making its continuance prejudicial to the interests of its depositors.
• The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, has been requested to issue a winding-up order and appoint a liquidator for the bank.
• Depositors are entitled to receive insurance claims up to a monetary ceiling of ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
• Approximately 98.36 per cent of depositors are entitled to full deposit recovery, with the DICGC having already paid ₹26.72 crore as of March 31, 2026.