The bank has ceased to carry on banking business, with effect from the close of business on July 05, 2024.
FinTech BizNews Service
Mumbai, March 5, 2026: A reference is invited by the RBI to its 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.
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.
As the Writ Petition No. 19767 of 2024 has now been dismissed as withdrawn by the Hon’ble High Court of Karnataka vide its order dated February 17, 2026, the Order dated July 05, 2024 issued by RBI cancelling the banking licence of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.
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.
