The Reserve Bank of India (RBI) cancelled the licence of Desaiganj Nagari Cooperative Bank Maryadit, Desaiganj, under Section 35 A read with Section 56 of the Banking Regulation Act, 1949, effective immediately. The decision was announced in an official RBI press release dated August 27, 2026, citing the bank's failure to comply with regulatory requirements.
The RBI's action follows a detailed inspection and review of the bank's financial position and operations. The central bank found that the cooperative bank was unable to maintain adequate capital and reserves, and its financial health had deteriorated significantly. The RBI invoked its powers under the Banking Regulation Act to protect depositors' interests and maintain financial stability, as stated in the official release on rbi.org.in.
Licence cancellations of cooperative banks are part of RBI's regulatory oversight to ensure sound banking practices and safeguard public deposits. Similar actions have been taken in the past against banks failing to meet prudential norms. The move underscores the RBI's continued vigilance in monitoring cooperative banks, which play a crucial role in regional financial inclusion but often face operational challenges.
The RBI's press release is available on its official website, confirming the immediate effect of the licence cancellation. Depositors and stakeholders of Desaiganj Nagari Cooperative Bank Maryadit are advised to refer to the RBI's communication for further instructions and updates.