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RBI Revokes Banking Licence of Shankarrao Mohite Patil Sahakari Bank.

Banking & Finance | Dated: 23 Apr 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Which bank’s banking licence was recently revoked by the Reserve Bank of India (RBI) in April 2025?

Correct Answer: Shankarrao Mohite Patil Bank

🚀 Quick Recap: