Reserve Bank of India (RBI) cancels licence of Shree Mahalaxmi Urban Co-operative Credit Bank

Exam-focused facts from the 20 June 2026 current affairs briefing.

Key facts

The Reserve Bank of India (RBI) has cancelled the licence of Gokak, Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank due to its worsening financial position.
The RBI stated that the lender lacks adequate capital and earning prospects and does not comply with certain provisions of the Banking Regulation Act, 1949.
Upon liquidation, approximately 97.9 per cent of depositors are entitled to receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The Registrar of Co-operative Societies, Karnataka, has been requested to issue an order for winding up the bank and to appoint a liquidator.
The bank has been prohibited from conducting the business of banking, including the acceptance and repayment of deposits.