The Reserve Bank of India (RBI) has confirmed that the banking licence of Shimsha Sahakara Bank Niyamitha, located in Maddur of Mandya district in Karnataka, stands cancelled with immediate effect after the dismissal of a related petition by the Karnataka High Court.
RBI had originally cancelled the licence of the cooperative bank through a speaking order issued on July 5, 2024, following which the bank ceased to conduct banking operations.
However, the matter reached the High Court through Writ Petition No. 19767 of 2024, and in view of an interim order dated July 25, 2024, certain regulatory directives imposed by the central bank on the bank continued to remain in force.
The directives were periodically extended, most recently up to May 24, 2026. With the writ petition now dismissed as withdrawn by the High Court on February 17, 2026, the RBI’s original order cancelling the licence has come back into effect.
Accordingly, the bank is prohibited from carrying out banking activities under the provisions of the Banking Regulation Act, 1949.
