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RBI Cancels License of "Shankara Urban Co-operative Bank" Due to Capital Crunch.

Banking & Finance | Dated: 09 Dec 2025

The Reserve Bank of India (RBI) has cancelled the banking license of "Shankara Urban Co-operative Bank Ltd", located in Maharashtra, effective from the close of business on December 8, 2025. The decision was taken as the bank does not have adequate capital and earning prospects to pay its depositors in full.

🎯 Key Highlights:

  • Upon cancellation, the bank is prohibited from conducting the business of "banking" which includes acceptance of deposits and repayment of deposits.
  • According to the DICGC Act, 1961, every depositor is entitled to receive a deposit insurance claim amount of up to Rs 5 Lakh.
  • The Registrar of Cooperative Societies, Maharashtra, has been requested to issue an order for winding up the bank and appoint a liquidator.

💡 Other Important Facts:

  • Action: License Cancellation.
  • Bank: Shankara Urban Co-operative Bank.
  • Insurance Limit: Rs 5 Lakh per depositor.

📚 Test Your Knowledge:

Under which act does the RBI have the power to cancel the license of a cooperative bank?

Correct Answer: Banking Regulation Act, 1949

🚀 Quick Recap:

About DICGC

  • Chairman – M.D. Patra
  • HQ – Mumbai