RBI cancels Mumbai's Sarvodaya Co-operative Bank license for capital shortfall
Business
The RBI has canceled the license of Mumbai's Sarvodaya Co-operative Bank as of May 12, 2026, after finding it couldn't meet capital rules and wasn't earning enough to stay afloat.
The bank also broke key regulations and put depositors' money at risk, so the RBI stepped in to protect people's interests.
Sarvodaya Co-operative Bank halts deposits, withdrawals
Sarvodaya can no longer accept deposits or let you withdraw money.
If you had money there, don't panic. 98.36% of depositors are covered by insurance and can claim up to ₹5 lakh through DICGC, with ₹26.72 crore already disbursed toward insured deposits.
This is part of the RBI's push to keep urban co-op banks safer for everyone.