Phaltan-based Yashwant Cooperative Bank’s Licence Cancelled by RBI
Moneylife Digital Team 19 May 2026
Reserve Bank of India (RBI) has cancelled the certificate of registration (CoR) of Phaltan, Maharashtra-based Yashwant Cooperative Bank Ltd due to inadequate capital and poor earnings prospects. RBI has directed Yashwant Cooperative Bank to cease banking operations from 19 May 2026, after placing the lender on restrictions three times since May last year.
 
According to RBI, the Bank failed to comply with the requirements of the Banking Regulation Act.
 
“The continuance of Yashwant Cooperative Bank is prejudicial to the interests of its depositors. With its present financial position, it would be unable to pay its present depositors in full. The public interest would be adversely affected if the bank is allowed to carry on its banking business any further,” the central bank said.
 
Following the cancellation of its licence, Yashwant Cooperative Bank is prohibited from conducting banking business, including accepting fresh deposits and repaying existing deposits.
 
According to RBI, upon liquidation, every depositor of Yashwant Cooperative Bank will be entitled to receive deposit insurance of up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
 
Based on data submitted by the Bank, 99.02% of depositors are entitled to receive the full amount of their deposits from DICGC. As of 20 April 2026, DICGC had already paid ₹106.96 crore towards insured deposits based on claims received from depositors of the Maharashtra-based lender.
 
In February this year, RBI extended its operational restrictions on the lender till 28 May 2026. However, the central bank clarified that continuation of its restrictions, the third such restriction since 28 May 2025, did not indicate an improvement in the Bank’s financial position. 
 
On 28 May 2025, RBI had placed restrictions on withdrawals, advances and other banking operations, depending on Yashwant Cooperative Bank’s financial stability.
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