RBI Revokes Banking Licence of Shankarrao Mohite Patil Sahakari Bank.

Banking & Finance

In April 2025, the Reserve Bank of India (RBI) canceled the Certificate of Registration (CoR) of Shankarrao Mohite Patil Sahakari Bank Limited, located in Indapur, Maharashtra.The cancellation became effective from the close of business on April 11, 2025, thereby prohibiting the bank from conducting any banking activities, including accepting or repaying deposits.


      - The bank failed to maintain adequate capital and lacked earning potential, violating regulatory requirements under Section 11(1) and Section 22(3)(d) of the Banking Regulation Act, 1949.

      - The bank did not comply with the provisions of Sections 22(3)(a), (b), (c), (d), and (e) of the Banking Regulation Act, 1949.

      - RBI found the bank’s continued operations detrimental to depositors, as it was unable to repay its depositors in full.

Main Point :-   (i) The Deposit Insurance and Credit Guarantee Corporation (DICGC) has disbursed ₹47.89 crore to eligible depositors under Section 18A of the DICGC Act, 1961.

      (ii) Depositors are insured for up to ₹5 lakh per account as per DICGC norms.


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