The Reserve Bank of India (RBI) has canceled the license of ‘The Yashwant Co-operative Bank’ based in Phaltan, Maharashtra on the grounds that it does not have sufficient capital and income prospects. The central bank said in a statement on Tuesday (May 19) that this co-operative bank has failed to comply with certain provisions of the Banking Regulation Act and in the current financial situation it is not able to return the entire amount to its depositors.

Along with this, the Central Bank has requested the Cooperative Commissioner and Registrar of Maharashtra to close the bank and appoint a liquidator. RBI said that on liquidation, the depositors of the bank will get insurance amount up to a maximum of Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC).

What will happen to the money deposited in the bank?

According to RBI, 99.02 percent of the bank’s depositors are eligible to get their entire deposit amount. DICGC has already paid Rs 106.96 crore till April 20, 2026. RBI said that this co-operative bank will stop operating banking activities with the closure of business on May 19, 2026.

RBI has already canceled the licenses of many banks.

Even before this, RBI has canceled the licenses of many banks. It had also canceled the license of The Karwar Urban Co-operative Bank Limited of Karnataka. This bank was closed in July last year. There was a lot of discussion about Paytm Payments Bank also. RBI had canceled the license of Paytm Bank due to violation of many rules.

Apart from banks, RBI has also recently canceled the Certificates of Registration (CoR) of a large number of NBFCs (Non-Banking Financial Companies). Taking major action in May 2026, RBI had canceled the licenses of about 150 NBFC companies across the country. Of these, most of the companies were from Delhi (about 67) and West Bengal (about 75).

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