Banking and RBI
RBI cancels licence of Shree Mahalaxmi Urban Co-operative Credit Bank, Gokak, Karnataka
18 June 2026 | Reserve Bank of India
The RBI, by an order dated 16 June 2026, cancelled the licence of Shree Mahalaxmi Urban Co-operative Credit Bank Ltd., Gokak, Karnataka, under Section 22 read with Section 56 of the Banking Regulation Act, 1949. The bank ceases to carry on banking business from the close of business on 18 June 2026. The Registrar of Co-operative Societies, Karnataka has been requested to order winding up and appoint a liquidator.
The Economic Times reported that the bank's financial condition had deteriorated and that about 97.9 per cent of depositors are expected to receive their full deposits from DICGC on liquidation.
Key facts- Licence cancelled: Shree Mahalaxmi UCCB, Gokak (order dated 16 June 2026)
- Law: Section 22 with Section 56, BR Act, 1949
- Banking business ceases: close of business, 18 June 2026
- DICGC: about 97.9% of depositors fully covered (per ET)
Exam takeaway: RBI can cancel a bank's licence under Section 22 of the BR Act; DICGC insures deposits up to Rs 5 lakh.
Quick revision: RBI cancels licence of Shree Mahalaxmi UCCB, Gokak; closure from 18 June 2026.
Reserve Bank of India original sourceBanking and RBI
RBI imposes Rs 1.50 lakh penalty on Chitradurga District Co-operative Central Bank for KYC non-compliance
18 June 2026 | Reserve Bank of India
An RBI press release of 18 June 2026 says the RBI, by an order dated 15 June 2026, imposed a monetary penalty of Rs 1.50 lakh on The Chitradurga District Co-operative Central Bank Ltd., Karnataka, for contravening Section 20 read with Section 56 of the Banking Regulation Act, 1949 and not complying with RBI directions on Know Your Customer (KYC).
The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act. NABARD conducted the statutory inspection with reference to the bank's financial position as on 31 March 2025.
Key facts- Bank: Chitradurga District Co-operative Central Bank Ltd., Karnataka
- Penalty: Rs 1.50 lakh (order dated 15 June 2026)
- Reason: Section 20 contravention and KYC non-compliance
- Inspection by: NABARD, position as on 31 March 2025
Exam takeaway: RBI penalties are regulatory and do not by themselves affect the validity of transactions.
Quick revision: RBI penalty Rs 1.50 lakh on Chitradurga DCCB, 18 June 2026.
Reserve Bank of India original sourceBanking and RBI
RBI announces 3-day VRR auction of Rs 1,00,000 crore for 19 June 2026
18 June 2026 | Reserve Bank of India
The RBI announced on 18 June 2026 that, on a review of liquidity conditions, it would conduct a 3-day Variable Rate Repo (VRR) auction under the LAF on Friday, 19 June 2026, for a notified amount of Rs 1,00,000 crore, with reversal on 22 June 2026.
The RBI also announced an underwriting auction on 19 June for government securities worth Rs 32,000 crore (6.03% GS 2029, 6.68% GS 2033, 7.24% GS 2055 and 7.50% GOI SGrB 2056).
Key facts- VRR: 3-day, Rs 1,00,000 crore, auction 19 June 2026
- Reversal: 22 June 2026
- Window: 9:30 AM to 10:00 AM
- G-Sec underwriting auction 19 June: Rs 32,000 crore
Exam takeaway: VRR is a variable rate repo through which RBI injects liquidity for a set tenor.
Quick revision: RBI 3-day VRR Rs 1 lakh crore announced for 19 June 2026.
Reserve Bank of India original source