The Reserve Bank of India (RBI) has announced that the banking licence cancellation of Shimsha Sahakara Bank Niyamitha, located in Maddur, Mandya District, Karnataka, has come back into effect. The licence was originally cancelled through a Speaking Order dated July 5, 2024, after which the bank ceased operations at the close of business on the same day.

Earlier, RBI had extended certain regulatory directives imposed on the bank following an interim order issued by the High Court of Karnataka in July 2024. These directives remained in force until May 24, 2026.

However, the writ petition challenging RBI’s action has now been dismissed as withdrawn by the High Court through its order dated February 17, 2026. As a result, RBI’s original order cancelling the bank’s licence has been revived and remains fully enforceable.

Accordingly, the bank is prohibited with immediate effect from carrying out banking business as defined under the Banking Regulation Act, 1949, including all activities permitted under Sections 5(b), 6, and 56 of the Act.