Case Brief
By order dated June 16, 2026, RBI 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. RBI cited inadequate capital and earning prospects, non-compliance with multiple provisions of Sections 11(1) and 22(3) of the BR Act, and concluded that continuation of the bank would be prejudicial to depositors and public interest. Consequent to the cancellation, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect. RBI also requested the Registrar of Co-operative Societies, Karnataka to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Gokak, Karnataka