The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the RBI said in a statement.
On liquidation, every depositor would be entitled to receiving deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
As per the data submitted by the bank, about 99.02 per cent of the depositors were entitled to receive full amount of their deposits, the Reserve Bank of India (RBI) said.
As on April 20, 2026, DICGC has already paid Rs 106.96 crore.
Giving reasons for cancellation of the licence, the RBI said the bank has failed to comply with certain requirements under the Banking Regulation Act.
“The bank with its present financial position would be unable to pay its present depositors in full,” it said, adding that continuance of the bank will be prejudicial to the interests of its depositors.
Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 19, 2026.