New Delhi, May 19 -- The Reserve Bank of India has cancelled the licence of The Yashwant Co-operative Bank Ltd., Phaltan, and the bank will stop all banking operations after Tuesday. Customers will not be able to deposit or withdraw money from the bank once business closes that day.

In its order dated May 18, 2026, the RBI said it took the step because the bank was financially too weak to continue. "The bank does not have adequate capital and earning prospects," the RBI said, adding that this meant the bank could not meet basic banking norms meant to ensure safety and stability.

The central bank also noted that the bank had failed to comply with several important regulatory requirements that govern how banks must operate, manage risk, a...