RBI Cancels License Of Sarvodaya Co-operative Bank
“On liquidation every depositor would be entitled to receive thedeposit insurance claim amount of his/her deposits up to ₹5 lakh fromthe Deposit Insurance and Credit Guarantee Corporation (DICGC),” saidthe RBI in a statement.
Mumbai : The Reserve Bank of India (RBI) on Tuesday cancelled the licence of Sarvodaya Co-operative Bank, Mumbai effective Tuesday due to inadequate capital, poor earnings prospects, and non-compliance with provisions of the Banking Regulation Act. The central bank however assured that upon liquidation, 98 per cent of its depositors will receive full amount of their deposits
“On liquidation every depositor would be entitled to receive the deposit insurance claim amount of his/her deposits up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC),” said the RBI in a statement.
"As per the data submitted by the bank, about 98.36 per cent of the depositors were entitled to receive the full amount of their deposits from DICGC as on the date of imposition of All Inclusive Directions."
As on March 31, 2026, DICGC has already paid ₹26.72 crore of the total insured deposits.
Giving reasons for the cancellation of the licence, the RBI said Sarvodaya Co-operative Bank, with its present financial position, would be unable to pay its current depositors in full and public interest would be adversely affected if the bank is allowed to carryon its banking business any further.
The RBI statement said that Sarvodaya Co-operative Bank , Mumbai ceases to carry on banking business, with effect from the close of business on May 12, 2026. The RBI has asked the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, to issue an order for the winding up of the bank and to appoint a liquidator.
