In June 2026, the Reserve Bank of India (RBI) cancelled the licence of Shree Mahalaxmi Urban Co-operative Credit Bank, Gokak, Karnataka, due to inadequate capital and earning prospects, and the bank's failure to comply with certain provisions of the Banking Regulation Act, 1949. This action is part of RBI's ongoing supervisory measures to maintain the stability and integrity of India's cooperative banking sector.
Economy
RBI Cancels Licence of Shree Mahalaxmi Urban Co-operative Credit Bank, Karnataka
Key Points
- In June 2026, the Reserve Bank of India (RBI) cancelled the licence of Shree Mahalaxmi Urban Co-operative Credit Bank, Gokak, Karnataka, due to inadequate capital and earning prospects, and the bank's failure to comply with certain provisions of the Banking Regulation Act, 1949
- This action is part of RBI's ongoing supervisory measures to maintain the stability and integrity of India's cooperative banking sector
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• RBI cancelled licence: Shree Mahalaxmi Urban Co-operative Credit Bank, Gokak, Karnataka (June 2026) • Reason: inadequate capital, poor earning prospects, non-compliance with Banking Regulation Act 1949 • RBI supervises cooperative banks under Banking Regulation Act + Banking Laws (Co-operative Societies) Amendment Act, 2020 • RBI: India's central bank; regulates commercial + cooperative banks; HQ Mumbai
