The Reserve Bank of India (RBI) has revoked the banking license of Sarvodaya Co-operative Bank, located in Mumbai, due to insufficient capital and poor future earnings potential. The bank must halt all operations by May 12, 2026, and the RBI has directed the Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra to commence winding-up procedures. According to the RBI, approximately 98.36% of the bank's depositors are entitled to full reimbursement of their deposits, up to a limit of ₹5 lakh (around $6,000 USD) through the Deposit Insurance and Credit Guarantee Corporation (DICGC). As of March 31, 2026, the DICGC has already disbursed ₹26.72 crore to cover insured deposits. The RBI emphasized that allowing the bank to continue operations would adversely affect public interest, citing the bank's failure to meet regulatory requirements and its inability to repay depositors. In a related note, the RBI is expected to announce its largest-ever dividend to the government, providing a fiscal buffer amid economic pressures, with projected surplus transfers exceeding budget expectations for FY27.