Mumbai, May 13 -- The Reserve Bank of India (RBI) has cancelled the licence of Sarvodaya Co-operative Bank Ltd., Mumbai, citing inadequate capital, poor earning prospects and concerns over the interests of depositors.

In an official statement, the RBI said the licence was cancelled through an order dated May 12, 2026, under Section 22 read with Section 56 of the Banking Regulation Act, 1949.

Following the cancellation, the bank has ceased to carry on banking business with effect from the close of business on May 12.

The RBI also said that the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, has been requested to issue an order for winding up the bank and appointing a liquidator.

According to the centra...