Case Brief
RBI, by order dated February 11, 2026, cancelled the licence of Indian Mercantile Co-operative Bank Ltd., Lucknow under Section 22 read with Section 56 of the Banking Regulation Act, 1949. RBI said the bank had inadequate earning prospects, had failed to meet multiple statutory requirements under Sections 22(3)(b), (c), (d) and (e) read with Section 56, and that its continuance would be prejudicial to the interests of depositors and public interest. RBI also requested the Commissioner and Registrar of Cooperative, Uttar Pradesh to issue winding-up orders and appoint a liquidator. With immediate effect, the bank is prohibited from conducting banking business, including accepting and repaying deposits; depositors may claim insurance up to ₹5 lakh under DICGC, subject to the applicable law.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location