RBI cancels licence of Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank

RBI cancels licence of Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank

The Reserve Bank of India has cancelled the banking license of Karnataka-based Shree Mahalaxmi Urban Co-operative Credit Bank due to its deteriorating financial condition. The bank's inability to meet its obligations and its lack of adequate capital and earning prospects led to this decision. Approximately 97.9% of depositors are expected to receive their full deposit amounts from DICGC upon liquidation.

RBI cancels licence of Karnataka-based Shree Mahalaxmi Urban Co-op Credit Bank

The Registrar of Co-operative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator, the Reserve Bank of India (RBI) said in a statement on Thursday.

RBI Cancels The Licence Of Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak

The Reserve Bank of India (RBI), vide order dated June 16, 2026, has cancelled the licence of “Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak, Karnataka”, under Section 22 read with Section 56 of the Banking Regulation Act, 1949 (BR Act). Consequently, the bank ceases to carry on banking business, with effect from the close of business on June 18, 2026. The Registrar of Co-operative Societies, Karnataka has also been requested to iss…

RBI Cancels Licence of Shri Mahalakshmi Urban Co-operative Credit Bank in Karnataka I Economy India

Nearly 98% of Depositors Eligible to Receive Full Amount Through DICGC Insurance Cover Mumbai (Economy India): The Reserve Bank of India (RBI) has cancelled the banking licence of Shri Mahalakshmi Urban Co-operative Credit Bank Limited, Gokak, Karnataka, citing inadequate capital, poor earning prospects and non-compliance with key regulatory requirements. In an order dated June 16, 2026, issued under Section 22 read with Section 56 of the Bankin…