The Reserve Bank of India (RBI) cancelled the licence of Sarvodaya Co-operative Bank Ltd., Mumbai on May 12, 2026. NPCI has confirmed the bank has been disabled in NACH for further transactions. BSE has issued this notice to advise all members of the immediate operational consequences affecting UCC registrations and mandates on the BSE StAR MF platform.

Key Points

• RBI cancelled the licence of Sarvodaya Co-operative Bank Ltd., Mumbai effective May 12, 2026
• NPCI has disabled the bank from NACH, blocking any further transactions
• All UCC-linked bank accounts for this bank are immediately invalidated
• Mandates registered with Sarvodaya Co-operative Bank will be rejected on BSE StAR MF with the remark: “RBI cancels the licence of Sarvodaya Co-operative Bank Ltd.”
• Sarvodaya Co-operative Bank is removed from the list of valid banks for new UCC creation and fresh mandate registrations
• Existing systematic registrations (including XSIPs) linked to this bank must have mandates replaced immediately

Regulatory Changes

Following the RBI press release dated May 12, 2026, Sarvodaya Co-operative Bank Ltd. is no longer a licensed bank. NPCI has consequently disabled the bank in the NACH system. BSE has updated the BSE StAR MF platform to reflect these changes, removing the bank from valid bank lists for new UCC creation and fresh mandate registrations.

Compliance Requirements

• Members must identify all client UCC records linked to Sarvodaya Co-operative Bank Ltd. and treat those bank accounts as invalidated
• Members must replace existing mandates linked to Sarvodaya Co-operative Bank Ltd. with mandates from other valid banks, especially for all systematic registrations and XSIPs
• Members must ensure no new UCC registrations or mandate registrations are attempted with Sarvodaya Co-operative Bank Ltd.
• All necessary changes should be implemented at the earliest to avoid disruption to client investments

Important Dates

• May 12, 2026: RBI press release announcing cancellation of Sarvodaya Co-operative Bank Ltd. licence
• May 12, 2026: NPCI disables bank in NACH
• May 13, 2026: BSE notice issued; effective immediately for all members
• Immediate action required: Mandate replacement for all systematic registrations (XSIPs and others)

Impact Assessment

This circular has a high operational impact on BSE members and their clients who held bank accounts with Sarvodaya Co-operative Bank Ltd. Clients with active systematic investment plans (SIPs, XSIPs) linked to this bank will face immediate disruption unless mandates are replaced promptly. Failure to act swiftly may result in missed investment instalments and SIP failures. The removal of the bank from valid bank lists ensures no new registrations are made, but legacy mandates across potentially many clients require urgent remediation. Members should prioritize outreach to affected clients to collect updated bank mandate details.