MUMBAI, India — The Reserve Bank of India has canceled the banking license of The Yashwant Co-operative Bank in Phaltan, Maharashtra, citing inadequate capital and weak earning prospects.
The cancellation took effect at the close of business on May 19, 2026, barring the bank from conducting any banking activity, including accepting deposits or repaying deposits.
The RBI said the Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra has been directed to begin the winding-up process and appoint a liquidator.
Following liquidation, depositors will be eligible to receive deposit insurance claims of up to Rs 5 lakh each from the Deposit Insurance and Credit Guarantee Corporation. Based on data submitted by the bank, about 99.02% of depositors are expected to receive the full amount of their deposits, the RBI said.
As of April 20, the DICGC had already paid Rs 106.96 crore.
The central bank said Yashwant Co-operative Bank failed to comply with provisions of the Banking Regulation Act and that allowing it to continue operations would be harmful to depositors and the public interest.
The RBI said the bank’s current financial condition left it unable to repay depositors in full.
The move follows the RBI’s May 12 cancellation of the license of Sarvodaya Co-operative Bank, which the central bank also said lacked adequate capital and earning prospects. (Source: IANS)
