Mumbai, May 19: The Reserve Bank of India (RBI) has revoked the banking license of Yashwant Cooperative Bank as of Tuesday. The central bank stated that the bank lacks sufficient capital and income prospects.
In its announcement, the RBI specified that following the revocation of the license, Yashwant Cooperative Bank will not be allowed to conduct any banking activities after May 19, 2026.
The central bank has also directed the Commissioner of Cooperation in Maharashtra and the Registrar of Cooperative Societies to close the bank and appoint a liquidator.
In the event of liquidation, each depositor will be entitled to receive up to ₹5 lakh in deposit insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC). According to the RBI, data provided by the bank indicates that approximately 99.02% of depositors are likely to recover their full deposit amounts.
As of April 20, the DICGC has already disbursed ₹106.96 crore.
The RBI noted that Yashwant Cooperative Bank failed to comply with the provisions of the Banking Regulation Act, and its operations could be detrimental to the interests of depositors. The current financial situation of the bank indicates it cannot return the full amounts to its existing depositors. Therefore, allowing the bank to continue operations would be against public interest.
The RBI clarified that all banking activities, including accepting deposits and returning funds, are immediately suspended.
It is noteworthy that on May 12, the RBI also revoked the license of Sarvodaya Cooperative Bank, citing similar concerns regarding insufficient capital and income prospects.
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