During his stay in Vrindavan, Shri Sanatana Goswami resided in his bhajana-kutir near the old Shri Madana-mohana Temple, and would daily go for darshan of Shri Gopishwara Mahadev. When Sanatan Goswami became old, Shri Gopishwar Mahadev instructed him one day in a dream, “In your old age, please do not go to so much trouble to take my darshana. I myself will appear at Bankhandi nearer to your bhajana-kutir.” That very next day, Shri Gopishwara Mahadev appeared in Bankhandi. Seeing this, Sanatan Goswami became overwhelmed in ecstatic emotions. From that day on, he would take darshana of Bankhandi Mahadev each day before returning to his bhajana-kutir. Because Shri Gopishwar Mahadev appeared in Bankhadni, he became known by the name Bankhandi Mahadev.
This temple is situated at the junction of three roads at the end of Athkhamba, coming from the famous Banke Bihari Temple, Vrindavan.