The Reserve Bank of India (RBI) has cancelled the banking licence of Shimsha Sahakara Bank Niyamitha, Maddur, Mandya District, Karnataka. This cancellation, initially effective from July 5, 2024, was temporarily suspended due to an interim order from the Hon'ble High Court of Karnataka on July 25, 2024, which had extended a directive previously imposed on the bank. This directive was further extended until May 24, 2026.
However, the Hon'ble High Court of Karnataka dismissed Writ Petition No. 19767 of 2024 as withdrawn via its order dated February 17, 2026. Consequently, the RBI's original order dated July 5, 2024, cancelling the bank's licence, has been revived and is now in full force.
As a result, Shimsha Sahakara Bank Niyamitha is prohibited from conducting banking business, as defined by the Banking Regulation Act, 1949, and other related business activities, effective immediately. This press release is dated March 05, 2026, and is issued by Brij Raj, Chief General Manager.
Key Entities Referenced
Shimsha Sahakara Bank Niyamitha, Maddur, Mandya District, Karnataka: The bank whose banking license was cancelled.
Reserve Bank of India (RBI): The regulatory body that cancelled the bank's license and issued directives.
Banking Regulation Act, 1949: The law under which the bank is prohibited from conducting business.
Writ Petition No. 19767 of 2024: A legal case related to the bank's license cancellation and business operations.
High Court of Karnataka: The court that ruled on the Writ Petition.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
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ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
March 05, 2026
RBI cancels the licence of Shimsha Sahakara Bank Niyamitha, Maddur,
Mandya District, Karnataka
A reference is invited to our Press Release dated July 05, 2024, informing that the
banking licence of Shimsha Sahakara Bank Niyamitha, Maddur (the bank), Mandya
District, Karnataka has been cancelled by the Reserve Bank of India (RBI) vide
Speaking Order dated July 05, 2024, and the bank has ceased to carry on banking
business, with effect from the close of business on July 05, 2024.
2. A reference is also invited to our Press Release dated August 08, 2024, extending
the Directive No. BLR.DOS.SSMS.No.S2174/12-08-295/2022-23 dated February 23,
2023, imposed on the bank by RBI, in view of the interim order dated July 25, 2024,
passed by the Hon’ble High Court of Karnataka in Writ Petition No. 19767 of 2024.
The said Directive was last extended up to close of business as on May 24, 2026,
vide Press Release dated November 20, 2025.
3. As the Writ Petition No. 19767 of 2024 has now been dismissed as withdrawn by
the Hon’ble High Court of Karnataka vide its order dated February 17, 2026, the
Order dated July 05, 2024 issued by RBI cancelling the banking licence of the bank
stands revived and is in force.
4. Accordingly, Shimsha Sahakara Bank Niyamitha, Maddur, Mandya District,
Karnataka is prohibited from conducting the business of ‘banking’ as defined in
Section 5(b) read with Section 56 of the Banking Regulation Act, 1949, and other
forms of business as mentioned in Section 6 of the said Act with immediate effect.
(Brij Raj)
Press Release: 2025-2026/2218 Chief General Manager