The Reserve Bank on Tuesday cancelled the licence of city-based Sarvodaya Co-operative Bank due to a lack of adequate capital and earning prospects.
Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 12, 2026, it said in a statement.
The RBI has asked the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, to issue an order for the winding up of the bank and to appoint a liquidator.
On liquidation, every depositor would be entitled to receive the deposit insurance claim amount of his/her deposits up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
“As per the data submitted by the bank, about 98.36% of the depositors were…