Case Brief
The Reserve Bank of India cancelled the banking licence of Belgaum Catholic Co-operative Bank Ltd., Belgaum (Karnataka) after concluding that the bank had ceased to be solvent and that all efforts to revive it had failed. RBI noted that earlier statutory inspections showed worsening financial health, and the bank had already been placed under Section 35A directions restricting loans and advances, investments, borrowings, fresh deposits, and imposing a withdrawal cap. The bank also failed to submit a viable revival or merger proposal in response to the show-cause notice. RBI requested the Registrar of Co-operative Societies, Karnataka to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Belgaum, Karnataka