Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak

RBI cancelled the licence of Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak, Karnataka. The bank must stop banking business, and liquidation proceedings are to follow.

The bank can no longer conduct banking business from the close of business on June 18, 2026, and must move into liquidation/winding-up. Depositors are affected because deposit-taking and repayment activities stop, though eligible insured depositors may claim up to ₹5 lakh from DICGC subject to law and claim processing.

• Section 22 read with Section 56 of the Banking Regulation Act, 1949
• Section 11(1)
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949

+7 more in the case brief

RBI has extended its existing Section 35A/56 directions on Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak. The directive now runs until close of business on December 27, 2025.

The bank remains under the same RBI-imposed operating conditions through December 27, 2025, subject to review. The extension continues to constrain the bank's operations under the existing directive, while customers and counterparties remain subject to those ongoing restrictions until RBI modifies or withdraws them.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI extended its existing Section 35A/56 directions on Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak for another three months. The terms remain unchanged.

The bank remains subject to the same RBI operating restrictions for the additional three-month period, with the directive continuing unchanged until September 27, 2025. Customers and counterparties are affected indirectly to the extent the existing restrictions limit the bank's operations; the order is subject to review and may be modified further by RBI.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI has extended its existing Section 35A/Section 56 directions on Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak for another three months. The directive now runs until June 27, 2025, subject to review.

The bank remains subject to the existing RBI directions for the extended period and must continue operating under the same conditions until close of business on June 27, 2025, unless revised earlier on review. No new entity is added, but the bank and its customers remain affected by the continuing restrictions.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak under Section 35A directions. The bank faces severe operating restrictions, including a ban on withdrawals and on most fresh business activities.

The bank must operate under strict RBI controls for six months unless modified earlier. Depositors cannot freely withdraw funds, and the bank is blocked from normal lending, investment, deposit-taking, and many payment/asset-disposal activities except for permitted essentials and RBI-approved actions. This directly affects depositors and limits the bank's business operations while RBI monitors the situation.

• Section 35A
• Section 56 of the Banking Regulation Act, 1949
• Section 35A read with Section 56 of the Banking Regulation Act, 1949