Overview
- Sarvodaya Co‑operative Bank, which lost its licence Tuesday, is now barred from accepting or repaying deposits.
- The RBI cited inadequate capital, weak earning prospects, regulatory non‑compliance, and an inability to pay depositors in full.
- Maharashtra’s Registrar of Cooperative Societies has been asked to wind up the bank and appoint a liquidator to sell assets and settle claims.
- Under India’s deposit insurance scheme run by DICGC, each customer can claim up to Rs 5 lakh, with about 98.36% fully covered based on bank data.
- DICGC had already disbursed Rs 26.72 crore by March 31, 2026 toward insured deposits, which points to limited immediate losses for most customers.